Translation from Finnish

Legally binding only in Finnish and Swedish

Ministry of Transport and Communications, Finland

Maritime Act

(674/1994; amendments up to 544/2021 included)

By decision of Parliament, the following is enacted:

PART I

SHIPS

Chapter 1

General provisions on ships

Section 1 (991/2018)

Ship’s nationality

A ship is regarded as a Finnish vessel entitled to fly the Finnish flag if a Finnish citizen or legal
person owns more than sixty per cent of the ship.

The Finnish Transport and Communications Agency shall approve a ship other than one referred to
in subsection 1 as a Finnish vessel if:

1) a citizen of a Member State of the European Economic Area or a legal person formed in
accordance with the law of such state and having its registered office, central administration
or principal place of business within the European Economic Area owns more than sixty per
cent of the ship;

2) the ship is managed and operated from Finland;

3) the ship’s owner, if not responsible for the vessel in accordance with paragraph 2, appoints a
representative having a permanent municipality of residence and a place of residence in
Finland to perform this function; and

4) the ship has been removed from the ship register of another state while it is registered in the
transport register referred to in the Act on Transport Services (320/2017) or in the register of
ships maintained by the State Department of Åland referred to in the Register of Ships Act
(512/1993). (544/2021)

An approval referred to in subsection 2 above shall be withdrawn at the request of the owner of
the ship.

The Finnish Transport and Communications Agency may approve a ship not referred to in
subsections 1 and 2 as a Finnish vessel if:

1) the ship’s ownership, administration, lending or charter relationships reliably show that its use
for shipping is decisively under Finnish control;

2) the ship has been removed from the ship register of another state while it is registered in the
transport register or in the register of ships maintained by the State Department of Åland;
(544/2021)

3) the ship meets the requirements set for new vessels in maritime safety provisions; and

4) the ship’s registration is deemed to promote the Finnish shipping industry and its
employment.

Where a ship referred to in subsection 4 has no Finnish owners, it is required, besides the
provisions above, that Finnish citizens have representation in the foreign ship -owning entity’s
administrative organs or the possibility to participate in the exercise of decision-making powers in
the ship-owning entity in some other way.

A decision on the approval referred to in subsection 4 above shall include any terms deemed
necessary by the Finnish Transport and Communications Agency and an indication of its period of
validity. Such decision may be made for a maximum period of two years at a time. A new decision
may be made when the period of validity of the previous decision has expired. (544/2021)

Where the conditions for the decisions on approval referred to in subsection 2 or 4 are no longer
satisfied, or where the terms set for the approval referred to in subsection 4 are no longer being
met, the Finnish Transport and Communications Agency shall withdraw such approval, unless the
derogation can be considered negligible. Prior to withdrawal of an approval, the holder of the
approval shall be given an opportunity to provide a clarification on the matter. (544/2021)

Further provisions on how to apply for decisions on approval referred to in subsections 2 and 4,
the contents of such applications and clarifications to be appended thereto, and the terms to be
set for the approval referred to in subsection 4 may be issued by government decree. (544/2021)

Section 1a (991/2018)

Entering a Finnish-owned ship in another state’s ship register

A ship which should be regarded as Finnish under subsection 1 of section 1 may be transferred to
the ship register of another state within the European Economic Area in accordance with that
state’s legislation on registration of vessels owned by citizens or legal persons of other states in
the European Economic Area.

The Finnish Transport and Communications Agency may, in order to promote the Finnish
shipbuilding industry and employment, issue an approval for a ship which should be regarded as
Finnish under subsection 1 of section 1 to be entered in the ship register of another state within
the European Economic Area as that country’s ship if: (544/2021)

1) the ship was built in Finland and is entered in the ship register of such state immediately upon
completion;

2) a genuine link relating to the ship’s ownership, possession or operation exists between the
ship and the country of registration; and

3) the ship’s registration is deemed to involve serious reasons relating to the promotion of the
Finnish shipbuilding industry and employment.

An approval referred to in subsection 2 above shall include any terms deemed necessary by the
Finnish Transport and Communications Agency and an indication of its period of validity. Such
approval is issued for a fixed term, which may not exceed the period of validity of any charter
party on the ship’s operation or possession. The approval shall include a term prohibiting any
further transfer of the ship to a third country’s register. (544/2021)

Where the conditions for the issue of an approval referred to in subsection 2 are no longer
satisfied or the terms set by virtue of subsection 3 are no longer being met, the Finnish Transport
and Communications Agency shall withdraw the approval, unless such derogation can be
considered negligible. Prior to making a decision on withdrawal, the holder of the approval shall be
given an opportunity to provide a clarification on the matter. (544/2021)

Any approval referred to in subsection 2 above will lapse if the ship or a share thereof is sold
abroad with the result that the ship ceases to be Finnish under subsection 1 of section 1.
(544/2021)

Further provisions on how to apply for an approval referred to in subsection 2, the contents of
such applications and clarifications to be appended thereto, and the contents of withdrawal
decisions referred to in subsection 4 may be issued by government decree. (544/2021)

Section 1b (544/2021)

Approval of ships bareboat chartered to Finland

By way of derogation from the provisions of section 1, the Finnish Transport and Communications
Agency may, in accordance with this section, also approve as a Finnish vessel, on the charterer’s
application, a foreign ship which is bareboat chartered to Finland if:

1) the charterer is a Finnish citizen or legal person, or a citizen of a Member State of the
European Economic Area or a legal person formed in accordance with the law of such state
and having its registered office, central administration or principal place of business within the
European Economic Area;

2) the ship is managed and operated from Finland;

3) the charterer assumes responsibility for all of the obligations arising from the ship’s entry in
the transport register or in the register of ships maintained by the State Department of Åland
for a fixed period of time;

4) the ship’s owner, mortgagees and lienors have given written consent to the ship’s entry in the
transport register or in the register of ships maintained by the State Department of Åland;

5) the registration authority of the state in which the title to the ship is registered has given
written permission to enter the ship in the transport register or in the register of ships
maintained by the State Department of Åland; and

6) the ship’s registration is deemed to promote the Finnish shipping indust ry and its
employment.
If the charterer of a bareboat chartered ship is a citizen or legal person of a Member State of the
European Economic Area referred to in paragraph 1 of subsection 1, it is required, besides the
provisions above, that the charterer, if not responsible for the vessel in accordance with paragraph
2 of subsection 1, appoint a representative having a permanent municipality of residence and a
place of residence in Finland to perform this function.

A decision on the approval referred to in subsection 1 above may be made for the duration of the
charter party, but not longer than five years at a time. A new decision may be made when the
period of validity of the previous approval has expired.

The Finnish Transport and Communications Agency shall withdraw the approval if the conditions
for its issue are no longer satisfied, unless such derogation can be considered negligible. Prior to
withdrawal, the charterer of the bareboat chartered ship shall be given an opportunity to provide a
clarification on the matter. The Finnish Transport and Communications Agency shall also withdraw
the approval at the charterer’s written request.

Finnish law applies to any ship entered in the transport register or in the register of ships
maintained by the State Department of Åland by virtue of this section, with the exception of
matters concerning the ship’s ownership and mortgaging, which are subject to the law of the state
in which its title is registered. No mortgages shall be granted over the ship in Finland.

Provisions on how to apply for an approval referred to in subsection 1, the contents of such
applications and clarifications to be appended thereto are issued by government decree.

Section 2 (337/2018)

Registration of ships

Finnish ships engaged in merchant shipping shall be entered in the transport register in
accordance with the Act on Transport Services (320/2017) or in the register of ships maintained by
the State Department of Åland in accordance with the Register of Ships Act (512/1993).

Section 3

Certificate of Nationality and other certificates and ship’s documents

Any seagoing merchant ship shall have a Certificate of Nationality and other certificates and ship’s
documents specifically stipulated in keeping with the nature of vessel and trade.
Section 4

Ship’s home port

The home port of a ship registered in Finland is the port of this country entered as such in the
transport register or in the register of ships maintained by the State Department of Åland in
accordance with the owner’s declaration. (337/2018)

The home port of any other Finnish ship is considered to be in the owner’s domicile or, if he or she
does not reside in this country, the City of Helsinki.

Section 5

Transfer of a ship

Any transfer of a ship already registered or to be registered shall be made in writing and in the
presence of witnesses.

Separate provisions shall be observed in the transfer of ships being sold in a forced sale.

The provisions of this and section 6 on ships also apply to holdings in a ship.

Section 6 (337/2018)

Validity of an acquisition in cases of double transfer

If a person transfers a ship or a holding in a ship to more than one person, and if the person to
whom the latter transfer was made has had his or her acquisition entered in the transport register
or the register of ships maintained by the State Department of Åland, the earlier transfer is void
against that person, provided that the acquisition was made in good faith and for consideration.

Section 7

Condemnation of a ship

A damaged ship shall be condemned in a survey where its restoration is not possible or, should
restoration need to take place in another location, the ship cannot be transported there, and
where it is uneconomic to restore the ship.
Where a ship is in a foreign location, its condemnation shall comply with the procedure in place
therein.

Sections 8–8c

Sections 8–8c were repealed by Act 1688/2009.

Section 9

Scope of application of the Act

The provisions of this Act only apply to vessels not engaged in merchant shipping where
appropriate.

Chapter 2

Registration of ships

Section 1 (337/2018)

Registration of ships in the transport register and the register of ships

Provisions on the registration of ships are laid down in the Act on Transport Services and the
Register of Ships Act.

Chapter 3

Ship mortgages and maritime liens

Section 1

Ship mortgages

Provisions on ship mortgages are laid down in the Ship Mortgage Act (211/1927).
Maritime liens on ships

Section 2

Claims secured by maritime liens on a ship

A maritime lien on a ship stands as security for any claim against the ship operator arising out of:

1) wages and other sums due to the master or any other person employed on the ship in respect
of his or her employment;

2) port, canal and other waterway dues and pilotage dues;

3) any compensation for loss of life or personal injury occurring in direct connection with the
operation of the ship;

4) any compensation payable for loss of or damage to property occurring in direct connection
with the operation of the ship, unless the claim can be based on an agreement; and

5) any salvage reward, compensation for wreck removal and contribution in general average.

The provisions of paragraphs 3 and 4 of subsection 1 do not apply to any claims for compensation
arising out of nuclear damage.

Any maritime lien is also valid where a claim is against a shipowner who is not an operator, or any
person operating the ship as a charterer or otherwise in lieu of the ship operator.

Section 3

Priority of claims

The priority among the claims referred to in paragraphs 1–5 of subsection 1 of section 2 is
indicated by the numerical order of the paragraphs. Notwithstanding, any claim referred to in
paragraph 5 shall always take priority over any claims referred to in paragraphs 1 –4 that have
arisen earlier.

The claims referred to in each of the paragraphs of subsection 1 of section 2 have equal rights for
payment. Notwithstanding, any subsequently arising claims referred to in paragraph 5 have
priority over earlier ones.
Section 4

Validity of maritime liens

With the exception of the case mentioned in section 7, a maritime lien continues to attach to the
ship even if the title to the ship is transferred to another or the ship’s registration is changed.

If a ship’s voluntary transfer to foreign ownership results in the extinction of a maritime lien on a
claim for which the previous owner was not personally liable, or in the subordination of priority,
the transferor is liable for paying the claim to the extent that it cannot therefore be sat isfied out of
the ship. If several parties jointly own the ship, the same applies to each who has participated in
or consented to the transfer.

Section 5

Right of retention

Anyone in possession of another party’s ship or ship under construction for the pu rposes of repairs
or construction is allowed to retain such a ship or ship under construction as security for a claim
based on performance of the task. In such cases, the provisions of the Act on the Right of a Self-
Employed Person to Sell an Unclaimed Object (688/1988) shall be observed as appropriate.

Section 6

Extinction of maritime liens by lapse of time

Any maritime lien on a ship will extinguish after a period of one year from the date on which the
claim arose, unless the ship has been arrested or attached prior to the expiry of such period,
resulting in a forced sale. The limitation period may not be extended nor suspended, but it will not,
however, run when a ship cannot legally be arrested or attached for a claimant’s claim.

Section 7

Forced sale

Should a ship be sold in a forced sale in Finland, any maritime lien and right of retention will cease
to attach to the ship after the price has been paid, provided that the sale remains final.
Claimants have the right to receive payments from the sales price in the order provided for
attached property. Any claim secured by a maritime lien may be lodged in full, notwithstanding the
provisions of chapter 9 on ship operators’ limitation of liability, but it shall not receive a dividend in
excess of the maximum amount allotted to it under these provisions.

Any forced sale conducted in a foreign state has the impact laid down in subsection 1, if the forced
sale was conducted in accordance with that state’s law and in compliance with the provisions of
the International Convention of 1967 for the Unification of Certain Rules relating to Maritime Liens
and Mortgages.

Section 8

Ships under construction

The provisions on maritime liens on ships apply correspondingly to any ship under construction as
of the time at which it was launched.

Maritime liens on cargo

Section 9

Claims secured by maritime liens on cargo

A maritime lien on cargo stands as security for:

1) any claim for a salvage reward and contribution in general average, or any other costs to be
allocated on the same criteria;

2) any claim arising out of an agreement concluded or any other action taken by a carrier or
master within the authority vested in him or her under this Act, and any claim by a cargo
owner on account of goods sold for the benefit of another cargo owner; and

3) any claim of a carrier based on a charter party, where it can be made against the person
demanding goods to be delivered.
Section 10

Priority of claims

The priority among the claims referred to in paragraphs 1–3 of section 9 is indicated by the
numerical order of the paragraphs. The claims mentioned in the same paragraph have equal rights
for payment. Notwithstanding, any subsequently arising claims have priority over earlier ones
among those arising out of different occurrences as referred to in paragraphs 1 and 2.

Section 11

Validity of maritime liens on cargo

Where the goods standing as security for a claim are delivered or sold for the benefit of the ship or
cargo, the maritime lien will cease to attach to the goods.

Should the goods be sold in a forced sale, any maritime lien attaching to the goods will cease to
have effect after the price has been paid, provided that the sale remains final.

Any person who delivers the goods which he or she knew or ought to have known to stand as
security for a claim without the consent of the claimants, will be liable for paying the claim to the
extent that it cannot therefore be satisfied out of the goods. The same liability applies to the
consignee for any claim for which he or she would not otherwise be personally liable, if he or she
knew about the claim at the time of delivery.

Section 12

Extinction of maritime liens on cargo

Any maritime lien on the goods loaded will extinguish after a period of one year from the date on
which the claim arose, unless an action for the recovery of payment has been initiated in
accordance with due process of law prior to the expiry of such period, or unless the goods have
been arrested or attached, resulting in a forced sale. The limitation period will not, however, run
when the goods cannot legally be arrested or attached for a claimant’s claim.

Where a claim has been referred to an Average Adjuster, such action is deemed to have been
initiated to recover payment.
Common provisions

Section 13

Payment out of pledged assets

Where a claimant holds a maritime lien on several pledged assets, each asset secures the full
amount of the claim.

If a claimant secures payment out of one asset for a part of his or her claim in excess of what was
due to that asset out of the value of respective assets at the time when the maritime lien was
created, the owner of that asset will be subrogated to the claimant’s rights against the other
assets in respect of the excess. The same right also applies to any claimant whose claim was
severally secured by the asset to the extent that the asset is insufficient to cover his or her claim
due to the previous claimant’s claim.

Section 14

Ranking of claims

For a claim secured by a maritime lien on a ship or cargo, the claimant has the right to receive
payment out of the object of the lien prior to other claims. For a claim secured by a right of
retention referred to in section 5, the claimant has the right to receive payment from the object of
the right of retention immediately after the claim mentioned above.

Section 15

Assignment of claims

Any maritime lien will remain valid even if the claim is assigned or attached, or is otherwise
transferred to another.
Section 16

Insurance indemnities

Maritime liens do not apply to indemnities payable for the destruction of or damage to a ship or
cargo, whether under an insurance contract or otherwise. Conversely, the right of retention under
section 5 may be exercised over such indemnities.

Section 17

Bringing of an action

An action to receive payment out of a ship or cargo for a claim secured by a maritime lien may be
brought against the owner of the pledged asset or the master. With regard to cargo, however, the
owner or operator of the ship, or anyone operating the ship in lieu of the ship operat or shall not
bring such action against the master.

Section 18

Scope of application of the chapter

The provisions of this chapter on maritime liens and the right of retention on ships shall be applied
where such right is invoked with a Finnish public authority.

Should a right other than a maritime lien or right of retention or another similar right referred to in
this chapter be invoked, its effect shall be determined under the national law of the state of the
ship’s registry. Such rights shall not, however, be granted priority over any maritime lien under this
chapter, nor over any mortgage under the International Convention of 1967 for the Unification of
Certain Rules relating to Maritime Liens and Mortgages. Nor may such right be otherwise
recognised in contravention of the said Convention or be in any other respect more favoured than
the closest comparable right under this Act.
Section 19

Application of the provisions to ships under construction

The provisions of section 18 apply correspondingly to any ship under construction as of the time at
which it was launched. Prior to such time, the national law of the state in which the ship is being
built will apply.

Chapter 4 (234/1995)

Arrest of ships

Section 1 (234/1995)

Scope of application

The provisions of this chapter apply to the arrest of ships to secure any maritime claim referred to
in this chapter on which an action has been or may be brought in Finland or abroad.

The chapter’s provisions apply to any ship entered in the transport register maint ained by the
Finnish Transport Safety Agency or in the register of ships maintained by the State Department of
Åland, or in a corresponding foreign registry. (337/2018)

The provisions of this chapter do not apply:

1) to Finnish ships where the applicant’s place of residence or principal place of business is in
Finland; nor

2) to claims concerning taxes and public charges and other public or comparable claims.

Section 2 (234/1995)

Relation to general provisions on seizure

The provisions of chapter 7 of the Code of Judicial Procedure and chapters 3, 4 and 7 of the
Execution Act on seizure and its enforcement apply to arrests of ships under this Act, unless
otherwise provided in this Act.
Section 3 (234/1995)

Conditions for arrests

A ship may only be arrested in respect of a maritime claim referred to in section 4.

Furthermore, the provisions of sections 1 and 2 of chapter 7 of the Code of Judicial Procedure on
the conditions for attachments also apply to arrests.

Where the applicant seeking an arrest has a claim secured by a maritime lien on a ship referred to
in section 2 of chapter 3, the ship may be arrested even if sufficient evidence were not presented
to establish that there is a risk that the opposing party will take action endangering the applicant’s
rights.

Section 4 (234/1995)

Maritime claims

‘Maritime claim’ means a claim arising out of one or more of the following:

1) damage caused by any ship either in collision or otherwise;

2) loss of life or personal injury caused by any ship or occurring in connection with the operation
of any ship;

3) salvage;

4) any agreement relating to the use or hire of any ship whether by charter party or otherwise;

5) any agreement relating to the carriage of goods in any ship whether by charter party, bill of
lading or otherwise;

6) loss of or damage to goods including luggage carried in any ship;

7) general average;

8) bottomry;

9) towage;

10) pilotage;

11) goods or materials wherever supplied to a ship for its operation or maintenance;

12) construction, repair or equipping of any ship or dock charges and dues;
13) wages and other sums due to the master or any other person employed on the ship in respect
of his or her employment;

14) disbursements made by the master, any shipper, charterer, consignor or agent on behalf of a
ship or its owner;

15) disputes as to the title to or ownership of any ship;

16) disputes between co-owners of any ship as to the ownership, possession, employment, or
earnings of that ship; or

17) the mortgage or hypothecation of any ship.

Section 5 (234/1995)

Assets subject to arrest

Arrest is permissible of any ship in respect of which a maritime claim is asserted.

Where a maritime claim is based on circumstances mentioned in paragraphs 1–14 or 17 of section

4, arrest is also permissible of any other ship, instead of the ship referred to in subsection 1, which
is owned by the same person who was, when the claim arose, the owner of the ship referred to in
subsection 1.

If a person other than the ship’s owner is personally liable for a maritime claim referred to in
subsection 2, it is permissible to arrest the ship in respect of which the maritime claim is asserted
or any ship owned by the debtor.

Notwithstanding the provisions of subsections 1–3, a ship may only be arrested where it can be
subjected to enforcement measures in relation to a maritime claim in Finland.

Ships are deemed to be in the same ownership when all the shares therein are owned by the same
person or persons.

Section 6 (234/1995)

Restrictions on arrest

A ship may only be arrested once in respect of the same maritime claim at the request of the same
claimant.
If security has been provided for a maritime claim to release an arrested ship, the ship shall not be
rearrested in respect of the same claim. However, a ship may be arrested if the claimant provides
evidence to establish that the security given is no longer valid or that there are otherwise specific
reasons for arrest.

Section 7 (234/1995)

Operation of arrested ships

Any arrested ship shall be prevented from sailing.

Where a ship was arrested in respect of grounds mentioned in paragraph 15 or 16 of section 4,

however, the Court may, for the period of the arrest:

1) permit the person in possession of the ship to continue trading the ship by posting bail or
other security; or

2) deal with the operation of the ship on other terms.

Section 8 (234/1995)

Reference provision

Provisions on the court having jurisdiction over cases involving arrests of ships under this Act are
laid down in chapter 21.
PART II

SHIPPING COMPANIES

Chapter 5

Shipping partnerships

Section 1

Scope of application of the chapter

The provisions of this chapter apply where two or more parties agree on engaging in merchant
shipping in the form of a shipping partnership on a single ship owned by them and entered in the
transport register or in the register of ships maintained by the State Department of
Åland. (337/2018)

In a shipping partnership, each ship operator is only liable for the obligations arising from the
operations referred to in subsection 1 in proportion to his or her share of the ship.

Any foreign national may only own shares in a shipping partnership to the extent that the ship
remains Finnish in accordance with section 1 of chapter 1.

Section 2

Contractual stipulations

The following provisions apply unless otherwise agreed: section 3, subsection 2; sections 4 and 5;
section 6, subsections 2 and 3; sections 7 and 10–13; section 14, subsections 1 and 2; and section
18.

Section 3

Formation of a shipping partnership

A written agreement shall be drawn up on the formation of a shipping partnership.

Any amendment to the partnership agreement will only be valid if all of the ship operators have
agreed the amendment unanimously.

Section 4

Partners’ meetings

The affairs of a shipping partnership are decided at the meetings of its partners. A notice of a
meeting shall be sent to each ship operator no later than one week prior to the meeting by
registered mail, telegram, telex or in another verifiable manner. The notice shall indicate the
matters to be addressed at the meeting.

Partners’ meetings shall be convened by the principal operator. A meeting shall also be convened
if so requested in writing by ship operators holding at least one tenth of all shares in the ship for
the purpose of considering a stated matter. The meeting shall be convened within 14 days of the
date on which the request was presented. Where the principal operator is unable or fails to
convene a meeting, this may be done by one of the ship operators.

If a decision needs to be made to take urgent action necessary to secure the partnership’s rights
or prevent impending damage to the partnership or, if ship operators are unanimous, a meeting
may be held without a notice referred to in subsection 1.

Minutes shall be kept at partners’ meetings. Any ship operator who did not attend a meeting
referred to in subsection 3 shall be notified of the decision.

Section 5

Decision-making procedure at meetings

The votes of ship operators shall be calculated in accordance with their holdings in the ship.
Subject to the provisions of subsection 2, a motion supported by more than half of the votes cast
shall constitute the decision of the shipping partnership. In the event of a tie, the motion favoured
by the chairperson shall carry; notwithstanding, an election of the principal operator shall be
decided by drawing lots.

Any decision made at a meeting referred to in subsection 3 of section 4 or entailing the dissolu tion
of the partnership, shall only be valid if the motion is supported by more than half of all the votes
in the partnership.
A decision made by a partners’ meeting shall also bind any ship operator who did not attend the
meeting.

Section 6

Principal operator

A shipping partnership shall have a principal operator. The principal operator’s place of residence
shall be located in the European Economic Area. Where required, the Ministry of Transport and
Communications may grant exemptions from the residence requirement. A legal person whose
domicile is located in the European Economic Area may also be elected as the principal operator. A
principal operator resident or domiciled abroad is obliged to appoint a representative whose place
of residence or domicile is located in Finland.

The principal operator shall deal with the partnership’s day -to-day management in accordance with
the instructions given by the ship operators and act on behalf of the partnership in matters
concerning it before courts and other public authorities. The principal operator shall not assign or
pledge the ship nor rent or charter the ship to another for a period exceeding one year without
specific authorisation. The principal operator is not entitled to hire or terminate the ship mast er
unless given such authorisation by decision of a partners’ meeting.

The principal operator is entitled to receive reasonable remuneration for his or her duties.

Section 7

Relieving the principal operator of his or her position and liability for damages

The principal operator may be relieved of his or her position at any time by decision of a partners’
meeting. Where the principal operator personally owns at least half of the ship, he or she may be
relieved of his or her position by court decision following an action brought by a ship operator if
there is a legitimate reason for doing so.

A ship operator and the principal operator are liable to compensate the other ship operators for
any damage that they have intentionally or negligently caused in the cou rse of attending to the
affairs of the shipping partnership.

The provisions of chapters 2 and 6 of the Tort Liability Act (412/1974) apply to the adjustment of
damages as well as to the allocation of liability between two or more liable parties.
Section 8

Accounting and financial statements

Shipping partnerships shall keep accounting records and prepare financial statements on their
activities in compliance with the Accounting Act (655/1973), as appropriate. The financial
statements shall be dated and signed by the principal operator. The principal operator shall
present the financial statements and a report on the management of the shipping partnership’s
affairs to the partners’ meeting for each financial year within the three months following the end of
the financial year. The financial year is the calendar year, unless otherwise agreed.

The provisions of section 3 of chapter 9 of the Partnerships Act (389/1988) apply, as appropriate,
to the contents of a shipping partnership’s financial statements.

Where a shipping partnership is required to conduct an audit under its partnership agreement or
where ship operators holding at least one tenth of all ship shares so require, or where the shipping
partnership has employed, on average, more than 30 persons over the last two financial years, an
audit shall be conducted in compliance with the provisions of sections 2 –10 of chapter 10 of the
Partnerships Act, as appropriate.

The Accounting Act (655/1973) was repealed by the Accounting Act (1336/1997).

Section 9

Inspection of accounts and right to access information

The provisions of section 15 of chapter 2 of the Partnerships Act apply correspondingly to the
rights of ship operators to inspect the shipping partnership’s accounts and access information
about the partnership’s activities.

If a ship operator wishes to object to the shipping partnership’s financial statements, he or she
shall bring an action thereon against the principal operator within the six months following the
partners’ meeting where the financial statements were presented. Should this period be neglected,
the right of action is forfeited, unless the principal operator has acted in bad faith.
Section 10

Obligation to contribute to costs

Each ship operator is obliged to contribute to the partnership’s operating costs in proportion to his
or her share of the ship. Any ship operator who has failed to contribute, upon request, his or her
share of the costs arising from a measure decided is obliged to pay interest for late payment to
the principal operator or another ship operator who has covered his or her contribution as
provided in the Interest Act (633/1982).

Section 11

Distribution of profit and loss

Any profit and loss from partnership operations for the financial period is distributed among ship
operators in proportion to their ship shares.

A ship operator who has paid another ship operator’s share of the costs in accordance with section
10 is entitled to receive a share of the profit calculated for the latter ship operator’s share of the
ship as a deduction of his or her claim.

Section 12

Transfer of ship shares

If a holding in a ship is transferred to another, the transferee or transferor of the ship share shall
immediately notify the principal operator of the transfer.

If a ship operator loses his or her Finnish nationality, he or she shall immediately notify the
principal operator thereof.

The principal operator is obliged to inform other ship operators of any notification mentioned in
subsections 1 and 2 without delay as provided in subsection 1 of section 4.
Section 13

Redemption of ship shares

If a share in a ship has been transferred to a person other than another ship operator in the
shipping partnership in a manner other than a public auction, each ship operator has the right to
redeem the share. However, there is no right of redemption if the ship share was transferred to
the holder’s spouse or direct heir or the latter’s spouse, except in the case mentioned in subsection
2.

Notwithstanding the provisions of subsection 1, each Finnish ship operator has the right to redeem
a share in a ship if a ship operator has lost his or her Finnish nationality or if the ship share has
been transferred to a another with the consequence that the ship ceases to be of Finnish
nationality.

A ship operator wishing to redeem a ship share shall notify the transferee thereof within the two
months following the time when he or she was informed of an event mentioned in subsection 1 or
2.

If several persons wish to exercise their right of redemption, each one of them has the right of
redemption in proportion to his or her share of the ship. The redemption amount shall be the real
value of the ship share.

Section 14

Ship operator’s liability

A ship operator whose share in a ship has been transferred to another is liable to the other ship
operators for any obligations that he or she had at the time of transfer, and for any obligations
arising after the transfer but before the principal operator has received notification of the transfer.

The new ship operator will, immediately upon transfer, become entitled and obliged in relation to
the other ship operators in the same way as any ship operator. He or she is bound by any
decisions and measures made prior to the transfer as they did his or her predecessor. The other
ship operators may deduct from his or her share of the profit any contributions relating to
partnership operations that bound his or her predecessor.

The transferor of the ship share is liable for any obligation to a third party based on partnership
operations that arose prior to the transfer. He or she is also liable for any obligation arising after
the transfer to a third party acting in good faith until the transfer is entered in the transport
register or in the register of ships maintained by the State Department of Åland. The new ship
operator is only liable to a third party for any obligation arising after the transfer. (337/2018)

Section 15

Dissolution of a shipping partnership

A ship operator has the right to request that the shipping partnership be dissolved:

1) if he or she has given notice to terminate the partnership agreement and the period of notice
has ended, or when his or her agreed partnership period has ended;

2) if another ship operator is declared bankrupt or his or her share in the ship is attached;

3) if a court has dismissed the principal operator;

4) if another ship operator materially breaches his or her obligations based on the partnership
relationship or continuously abuses his or her position in the shipping partnership against the
interests of the partnership, or if the continuation of the partnership’s operations were
unreasonable for the ship operator due to a substantial change in the circumstances affecting
the partnership’s operating conditions; or

5) if a ship owned by the partnership ceases to be of Finnish nationality and it has been removed
from the transport register or from the register of ships maintained by the State Department
of Åland. (337/2018)

In addition to the provisions of subsection 1, following the bankruptcy of a ship operator or the
attachment of his or her share, the bankruptcy estate or the buyer that acquired the attached
share of the ship in a forced sale may request that the partnership be dissolved.

If the ship operator has given notice to terminate the partnership agreement, the shipping
partnership shall be dissolved within six months of termination, unless another period of notice
was agreed. If the ship operator invokes the end of the partnership period under the partnership
agreement, the partnership shall be dissolved upon expiry of the partnership period or, if the
redemption period referred to in subsection 3 of section 17 is still running at the end of the agreed
partnership period, immediately upon expiry of the redemption period. In a case referred to in
paragraphs 2–5 of subsection 1 and in subsection 2, the partnership shall be dissolved immediately
upon expiry of the redemption period referred to in subsection 3 of section 17.
Any request to dissolve a shipping partnership or its liquidation referred to in section 16 shall be
presented to the principal operator. Notwithstanding, if the grounds for dissolution in a case
mentioned in paragraph 3 of subsection 1 and in a case referred to in paragraph 4 concern the
principal operator, the request shall be presented to the other ship operators. The principal
operator shall inform the other ship operators of the request presented without delay.

Section 16

Liquidation of a shipping partnership

Where a shipping partnership is to be dissolved by virtue of section 15, the partnership shall be
liquidated at the request of a ship operator. The provisions of sections 10 –17 of chapter 5 of the
Partnerships Act apply to the procedure for liquidation, as appropriate, unless the ship op erators
unanimously agree on some other procedure.

No agreement referred to in subsection 1 above shall be concluded in a case referred to in

paragraph 2 of subsection 1 of section 15 without the consent of the bankruptcy estate,
attachment claimant or forced sale buyer.

Section 17

Redemption of ship shares due to grounds for dissolution

In lieu of dissolving a shipping partnership, another ship operator may redeem the ship share of
the ship operator in respect of whom there are grounds for dissolution referred to in subsection 1
of section 15. If the partnership’s dissolution is requested on the grounds of paragraph 5 of
subsection 1 of section 15, a redemption request may not be presented by a ship operator who
had the right referred to in subsection 2 of section 13 to redeem a transferred ship share before
such grounds for dissolution arose.

In a case referred to in paragraph 2 of subsection 1 of section 15, any share in a ship may only be
redeemed with the consent of the bankruptcy estate or attachment c laimant.

A ship operator shall notify the principal operator or, in the cases referred to in subsection 4 of
section 15, the other ship operators of his or her redemption request within one month of being
informed of a dissolution request presented by virtue of subsection 1 or 2 of section 15. Unless
such notification is made within the specified time frame, the right of redemption is forfeited.
The provisions of subsection 4 of section 13 apply to the redemption procedure under this section.

Section 18

Impact of dissolution

When a shipping partnership is dissolved, the ship owned by the partnership shall be sold.

Chapter 6

Ship master

Section 1

Master’s nationality (1688/2009)

Only a national of a Member State of the European Union or a state within the European Economic
Area may serve as the master of a Finnish merchant ship. (310/2008)

Subsection 2 was repealed by Act 1688/2009.

Section 2

Ship operator’s right to serve as the master

Any ship operator who owns more than a half of a ship has the right to serve in the capacity of its
master, provided that he or she has the statutory qualifications required. Unless the terms and
conditions of pay are agreed, these are determined by arbitrators or courts.

Section 3

Ensuring seaworthiness

Prior to beginning a voyage, the master shall ensure that the ship is seaworthy, considering the
itinerary and season, which also entails ensuring that the ship is properly manned, equipped and
supplied, and that the holds, refrigerating and cool chambers and all other parts of the ship in
which goods are carried are in good condition to receive, carry and store the goods, and that it
has adequate stability.

During the voyage, the master shall ensure that the ship is kept in proper condition.

In the event that there is any defect or deficiency affecting the ship’s seaworthiness that cannot
be immediately remedied, the master shall promptly notify the ship operator thereof. Should the
ship operator be unwilling to remedy such defect or deficiency, the master is entitled to resign
immediately.

Section 3a (1359/2002)

Voyage planning

Prior to beginning a voyage, the master shall ensure that the intended route was planned using
appropriate nautical charts and nautical publications for the area concerned.

A voyage plan shall identify the ship’s route so as to:

1) take into account the traffic separation scheme affecting the voyage;

2) ensure sufficient sea room for the safe passage of the ship throughout the voyage;

3) anticipate all known navigational hazards and adverse weather c onditions; and

4) take into account any relevant marine environmental protection measures and, where
possible, avoid any actions and activities which could cause damage to the environment.

Section 4

Ship’s documentation

The master shall ensure that the certificates and ship’s documents, whether laid down in section 3
of chapter 1 or otherwise necessary, and a copy of this Act are carried on board the ship.
Section 5

Accepting cargo

Without the consent of the ship operator, the master shall not take merchandise on board on his
or her own or a third party’s account. Should there be such occurrence, the master shall pay the
freight and cover the damage.

Section 6

Master’s deputy; prohibition on leaving the ship

Where the master is absent or unable to serve, the most senior deck officer present shall make
any decisions that will not wait.

If the master leaves the ship, he or she shall notify thereof the most senior deck officer present or,
if no deck officers are available, some other member of the crew and shall give the necessary
instructions.

Where the ship is not moored in port or otherwise at safe anchorage, the master shall not leave
the ship, unless it is unavoidable. In case of imminent danger, he or she shall not be absent from
the ship.

Section 7

Substitution in certain cases

If the master dies or becomes unable to navigate the ship due to illness or for some other
compelling reason, or if he or she resigns, the most senior deck officer will assume command until
a new master is appointed. The ship operator shall be notified of such cases without delay.

Section 8

Duty to exercise proper care and salvage operations

The master shall ensure that loading and unloading take place and the voyage is performed with
due dispatch.
Prior to engaging in salvage of another vessel or cargo, the master shall carefully consider whether
this is consistent with his or her duties towards those whose rights and interests he or she is to
protect.

Section 9

Observing good seamanship

The master shall ensure that the ship is navigated and operated in compliance with good
seamanship.

No ship operator referred to in section 2 of the Ship Safety Control Act (370/1995) nor any other
person shall prevent or restrict the ship’s master from taking or executing any decision which, in
the master’s professional judgement, is necessary to safeguard human life at sea or to protect the
marine environment. (13/2007)

Section 10

Ship’s safe passage

The master is obliged to obtain information about regulations and instructions in effect in the
ship’s ports of call.

In the event of war or blockade, the master shall obtain a report on what to take into account in
order to secure the ship and cargo.

The master shall call a pilot whenever necessary for the safety of the ship.

Section 11

Assistance to persons in distress at sea

Any master finding a person in distress at sea is obliged, if it can be done without causing serious
danger to his or her vessel or crew or other persons on board, to render all assistance possible
and necessary to rescue the distressed person.

If the master has otherwise learnt that someone is in distress, or if he or she has become aware of
any impending danger to seagoing traffic, he or she is obliged to take action to rescue the
distressed person or avert the danger, provided that this can be done without causing serious
danger to his or her vessel or crew or other persons on board.

Provisions on the obligation of the master to render assistance where his or her ship collides with
another vessel are laid down in section 5 of chapter 8.

Section 11a (1146/2001)

Danger of distress at sea

If a ship is in any danger of distress at sea that may endanger those on board, the master shall,
without delay, report thereon to the maritime rescue coordination centre (MRCC) or the maritim e
rescue sub-centre (MRSC) referred to in the Maritime Search and Rescue Act (1145/2001), or to
some other unit in charge of maritime search and rescue services within the area in question.

Section 12

Action in the event of distress at sea

Where the ship is in distress at sea, the master is obliged to do all in his or her power to rescue
those on board and to protect the ship and cargo. As far as possible, he or she shall ensure that
the ship’s documents are secured and arrange for salvage of the ship and cargo.

The master shall not abandon ship as long as there is reasonable hope of its salvage, unless his or
her life is in serious danger.

When engaging in salvage operations, the master shall lead the salvage work, unless prohibited by
local law or hindered by a salvage contract. The master shall, personally or with assistance from a
deck officer, keep an explicit record of anything salved, including the number of persons
participating in salvage and transport of goods to a place of storage as well as the work involved.
He or she is likewise be obliged to review and sign for any invoices for the costs of salvage.

The master shall, as soon as possible, conduct a survey of the vessel and salved goods as
provided in section 25 of chapter 18 and ensure that the goods are placed in suitable safekeeping.
Section 12a (991/2018)

Master’s reporting obligation

Any ship’s master shall report to ships in the vicinity, as well as to the Finnish Transport and
Communications Agency when in Finnish waters and to the authority, body or system promoting or
monitoring the safety of navigation in another area, information of any dangerous ice, ice
accretion or derelict, winds of force 10 or above on the Beaufort scale for which no storm warning
has been issued, or any other imminent danger to navigation, as well as any defective or
misleading operation, displacement or disappearance of a navigational aid.

Section 13

Master’s authority to act on behalf of a ship operator

On behalf of a ship operator, the master is, in that capacity, entitled to:

1) enter into any legal transactions to protect the ship or perform a voyage;

2) conclude agreements on the carriage of goods on a voyage and on the carriage of passengers
where the ship is intended to transport passengers; and

3) bring any legal action on behalf of the ship.

Should money be required for such purpose, the master may raise funds by incurring liabilities or
selling the ship operator’s property or, in case of emergency, cargo.

Even if such legal transaction were not necessary, the ship operator is nevertheless bound in
respect of any third party acting in good faith.

Section 14

Notifications and requests for instructions

During a voyage, the master shall notify the ship operator of any important measures that he or
she has deemed necessary for the safety of the ship and those on board, the progress of the
voyage and any legal transactions undertaken in its course, and on any other details that would
otherwise be useful for the ship operator to know. Prior to taking important steps, the master
shall, whenever circumstances allow, seek instructions from the ship operator personally or from
an agent appointed by the latter. If money is required for the ship and there is no time to wait for
the ship operator’s instructions, the master shall raise funds in a manner most advantageous to
the ship operator.

If the ship is attached or arrested for a debt while abroad, and if the ship’s documents indicate
that the ship is mortgaged for a debt, the master shall notify both the ship o perator and the
registration authority of such action.

Section 15

Protecting the interests of cargo owners

During a voyage, the master shall take good care of the cargo and otherwise protect the rights
and interests of the cargo owner.

Section 16

Right to represent a cargo owner

On behalf of the cargo owner, the master is, in that capacity, entitled to enter into any legal
transactions and bring any legal action in matters concerning the cargo and as provided on
carriers.

Section 17

Liability for obligations

The master is not personally liable for obligations which he or she has undertaken in this capacity
on behalf of the ship operator or cargo owner.

The master is liable to compensate for any damage that he or she has, in that capacity, caused
through fault or neglect to the ship operator, cargo owner or any other person whose rights and
interests he or she is to protect.

The damages payable by the master may be adjusted within reason in view of the degree of
proven guilt, the level of damage or other circumstances. Notwithstanding, the provisions of the
Tort Liability Act on the liability of employees apply to the liability for damages of a master who is
in the position of an employee.
Section 18

Accountability

The master shall render an account whenever a ship operator so requires. If the ship operator
wishes to object to the account, he or she shall bring an action thereon within one month
following receipt of the account. If the account is not objected to within this period, the ship
operator has forfeited the right to object, unless the master has acted in bad faith.

In the account, the master shall credit the ship operator for any specific compensation that he or
she has received from a shipper, charterer, cargo owner, suppliers or others with whom h e or she
had dealings as a master, unless he or she has obtained the ship operator’s explicit consent to
keep it.

Section 19

Master’s dismissal

If the master personally owns more than half of the ship, a court may dismiss him or her following
an action brought by a ship operator if there are legitimate reasons for this.

Section 20

Application of provisions

Provisions on the master’s duties in the event of collision and in respect of keeping record books,
submitting maritime declarations and reports and conducting surveys are laid down in chapter 8
and chapter 18, respectively.
PART III

LIABILITY

Chapter 7

General provisions on liability

Section 1

Ship operator’s liability

Unless otherwise provided in this Act or elsewhere by law, a ship operator is liable for any damage
caused by the ship’s master, crew, pilot or any other person who, without being a member of the
crew, performs work for the ship on the instructions of the ship operator or master through fault
or neglect in that capacity. Where the person who caused the damage is also liable alongside the
ship operator, he or she is only liable for the amount not recoverable from the ship operator.

A ship operator who has paid compensation for any damage mentioned in subsection 1 is entitled
to claim the amount paid from the person who caused the damage in accordance with the basis
for that person’s liability for damages. On the same grounds, the person who caused the damage
is liable for any damage caused to the ship operator.

Provisions on the limitations of ship operators’ liability are laid down in chapters 9 and 13 –15 and
in Regulation (EC) No 392/2009 of the European Parliament and of the Council on the liability of
carriers of passengers by sea in the event of accidents, hereinafter referred to as the Athens
Regulation. (249/2017)

Provisions on shipowners’ liability for oil pollution damage from ships and on the limitation of
shipowners’ liability are laid down in chapter 10. (421/1995)

Provisions on shipowners’ liability for damage caused by hazardous and noxious substances carried
by water and on limitation of shipowners’ liability are laid down in chapter 11. (1401/2019)

Subsection 5 as added by Act 1401/2019 enters into force on a date to be specified by decree.

Provisions on registered shipowners’ liability for removal of a wreck resulting from a maritime
casualty are laid down in chapter 11a. (860/2016)
Section 2 (264/2013)

Obligation to insure

For a Finnish ship of 300 gross tonnage or more, the ship operator shall take out and maintain
insurance or provide security referred to in Directive 2009/20/EC of the European Parliament and
of the Council on the insurance of ship operators for maritime claims. Such insurance or security
shall cover the liability arising to the ship operator by virtue of sections 1–4 of chapter 9 up to the
amount mentioned in subsection 1 of section 5 of chapter 9.

The obligation to take out and maintain insurance or provide security referred to in subsection 1
above also applies to any foreign ship of 300 gross tonnage or more, if the ship:

1) arrives in or departs from a Finnish port;

2) arrives in or departs from an anchorage or waiting area in Finnish waters; or

3) uses Finnish waters for a purpose other than carriage.

‘Finnish waters’ refers to the territorial waters and inland water area.

Subsections 1 and 2 above do not apply to warships, auxiliary warships or other state-owned or
operated ships used for a non-commercial public service.

Section 3 (264/2013)

Certificates issued by insurance or security providers

Any insurance or security referred to in section 2 above shall be proven by a certificate issued by
the insurance or security provider, which shall indicate at least:

1) name of ship, its IMO number, and port of registry;

2) shipowner’s name and principal place of business;

3) type and duration of the insurance or security; and

4) name and principal place of business of the provider of the insurance and, where appropriate,
the place of business where the insurance is established.

If the language used in the certificates referred to in subsection 1 above is neither English nor
French nor Spanish, the text shall include a translation into one of these languages.
The master is obliged to ensure that the certificate referred to in subsection 1 is carried on b oard
the ship.

Chapter 8

Damage caused by collision between vessels

Section 1

Provisions on avoidance of collisions

Provisions on what vessels shall comply with in order to avoid collision are laid down separately.

Section 2

General provision on compensation for damage

If vessels collide so as to cause damage to either or both of the vessels or to any goods or persons
on board, and if one of the parties is solely at fault, that party shall cover all damage and loss that
it has thereby caused.

If both of the parties are at fault, they shall compensate for damage to each other in proportion to
the degree and consequences of the faults respectively committed and, subject to the provisions
of section 3, shall only be liable for their respective proportions of the compensation. Should
circumstances give no grounds for any definite apportionment, each shall cover half of the
damage.

When determining the question of fault resulting in the collision, the court shall specifically
consider whether or not there was time for deliberation.

Section 3 (249/2017)

Compensation for loss of life or personal injury

In respect of damages for loss of life or personal injuries caused by the collision, the parties at
fault are jointly and severally liable. If one of the liable parties has paid more than his or her fair
share, the excess may be collected from the other. Against such a claim, the latter has the right to
invoke the same basis for exoneration from or limitation of liability which he or she could invoke
against the injured party under this Act, the Athens Regulation or corresponding provisions of
foreign law, or a contractual term based thereon. No contractual term shall, however, be invoked
for exoneration from or limitation of liability beyond what is provided in chapters 13–15, the
Athens Regulation or corresponding foreign law.

Section 4

Compensation for accidental damage

Where a collision was accidental or it cannot be established that it was caused by fault of either
one of the parties, each party bears its own damages.

Section 5

Master’s obligations

Where a ship has collided with another, a master is obliged, if he or she can do so without serious
danger to his or her own ship or its crew or other persons on board, to render to the other vessel
and those on board all assistance necessary to rescue them from the danger arising from the
collision. The master shall also inform the master of the other vessel of his or her ship’s name and
home port, the locations or ports from which the vessel is coming and to which it is bound.

Section 6

Certain other damage

The provisions of this Act on collision shall also be observed where a ship, due to manoeuvring or
otherwise, causes damage to another vessel or any persons or goods on board of the latter, even
if no collision actually takes place.
Chapter 9

General provisions on limitation of liability (421/1995)

Section 1

Right to limitation of liability

A ship operator has the right to limit his or her liability in accordance with the provisions of this
chapter. The same right also applies to a shipowner who is not an operator, anyone operating the
vessel in lieu of the ship operator, its charterer and shipper, and anyone who performs tasks
directly related to salvage. ‘Salvage operations’ also includes the measures referred to in section 2,
subsection 1, paragraphs 4–6.

If a claim for liability is made against any person for whom the ship operator or any other person
referred to in subsection 1 is responsible, that person also has the right to limit his or her liability
in accordance with the provisions of this chapter.

Any insurer who has issued insurance to cover limited liability under this chapter has the same
right to limit liability as the insured party.

Section 2

Claims subject to the right to limitation of liability

The right to limitation of liability applies to claims, regardless of the basis of liability, arising out of:

1) loss of life or personal injury or loss of or damage to property occurring on board or in direct
connection with the operation of the ship or with salvage operations;

2) loss resulting from delay in the carriage by sea of cargo, passengers or their luggage;

3) any other loss resulting from infringement of non-contractual rights and occurring in direct
connection with the operation of the ship or salvage operations;

4) operations undertaken for the purpose of raising, removing, destroying or rendering harmless
a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been
on board such ship;

5) operations undertaken for the purpose of removing, destroying or rendering harmless the
cargo of the ship; and
6) measures taken in order to avert or minimise damage subject to limitation of liability and any
further damage caused by such measures.

If a person entitled to limitation of liability has a counterclaim against the claimant arising out of
the same occurrence as the claim, the limitation only applies to the claim to the extent that it
exceeds the counterclaim.

Section 3

Claims excepted from the right to limitation of liability

The right to limitation of liability does not apply:

1) to any salvage reward, including the specific compensation referred to in section 9 of chapter
16, contribution in general average, or contractual compensation for measures referred to in
paragraph 4, 5 or 6 of subsection 1 of section 2; (1363/2006)

2) to any claim for oil pollution damage subject to the provisions of subsection 1, section 2 of
chapter 10; (421/1995)

2a) to any claim for damage caused by hazardous and noxious substances carried by water which
is subject to the provisions of subsection 1, section 2 of chapter 11; (1401/2019)

Paragraph 2a as added by Act 1401/2019 enters into force on a date to be specified by decree.

3) to any claim subject to an international convention or national law governing or prohibiting

limitation of liability for nuclear damage;

4) to any claim for nuclear damage caused by a nuclear ship;

5) to any claim for damage caused to the ship’s master, crew, pilot or anyone who, without
being a member of the crew, performs work for the ship on the instructions of the ship
operator or master, or anyone whose tasks are related to the operation of the ship or salvage
operations; nor

6) to any interest or compensation for legal costs.

Section 4

Forfeiture of the right to limitation of liability

The right to limitation of liability does not apply to anyone who is proven to have personally
caused the damage intentionally or through gross negligence, knowing that such damage was
likely to occur.

Section 5

Amounts of liability

Where the right to limitation of liability exists, the amount of liability is determined as follows:

1) The limit of liability for claims arising out of loss of life or personal injury of passengers of a
ship is 250,000 Special Drawing Rights (SDR) multiplied by the number of passengers that
the ship is authorised to carry according to its certificate. (249/2017)

2) The limit of liability for claims other than those based on loss of life or personal injury referred
to in paragraph 1 is SDR 3.02 million for ships with a gross tonnage not exceeding 2,000; if
the ship’s gross tonnage exceeds 2,000, the limit of liability is raised:

a) by SDR 1,208 for each additional unit of tonnage from no less than 2,001 to no more
than 30,000;

b) by SDR 906 for each additional unit of tonnage from no less than 30,001 to no more than
70,000;

c) by SDR 604 for each additional unit of tonnage in excess of 70,000.

3) The limit of liability for claims other than those referred to in paragraphs 1 and 2, which the
amounts mentioned in paragraph 2 are insufficient to cover, is SDR 1.51 million for ships not
exceeding 2,000 units of tonnage; if the ship’s unit of tonnage exceeds 2,000, the limit of
liability is raised:

a) by SDR 604 for each additional unit of tonnage from no less than 2,001 to no more than
30,000;

b) by SDR 453 for each additional unit of tonnage from no less than 30,001 to no more than
70,000;

c) by SDR 302 for each additional unit of tonnage in excess of 70,000.

(872/2015)

The limits of liability provided in subsection 1 above apply to the sum of all of the claims arising
out of the same occurrence against the ship operator, a shipowner who is not an operator, anyone
operating the vessel in lieu of the ship operator, its charterer and shipper, or anyone for whose
activities these are responsible.

For salvors not operating from any vessel or who operate solely on the ship being salved, the
liability limits shall be equivalent to those applicable to ships of 1,500 units of tonnage. The limits
of liability apply to the sum of all of the claims arising from the same occurrence and made against
a salvor referred to in this subsection, or anyone for whose activities he or she is responsible.

‘Ship’s tonnage’ refers to the gross tonnage calculated in accordance with the provisions of Annex
I to the International Convention of 1969 on Tonnage Measurement of Ships (Treaty Series of the
Statute Book of Finland 31/1982). ‘Special Drawing Right’ means the unit of account determined in
section 2 of chapter 23.

Section 6

Distribution of liability amounts

Each amount of liability is distributed among claimants in proportion to the level of claims in
respect of which the liability limit applies.

Where the amounts referred to in paragraph 2 of subsection 1 of section 5 are insufficient to pay
the claims mentioned therein, the remaining balance shall be paid from the amount referred to in
paragraph 3 of subsection 1 of section 5 with the same rights as the claims mentioned therein.

If the ship operator or any other person has, prior to the distribution of the amounts of liability,
paid the claim in part of in full, he or she will obtain the rights of a claimant in respect of the
amount paid.

Where the ship operator or any other person proves that he or she may have to pay, at a later
date, in part or in full any claim that he or she could have demanded to be paid out of the amount
of liability under subsection 3, had the claim been paid prior to the distribution of the amount of
liability, the court may order funds to be provisionally set aside to enable such person to bring his
or her claim at a later date.
Section 7

Constitution of a limitation fund

A limitation fund may be constituted if legal proceedings are instituted in Finland in respect of
claims subject to limitation, or if an arrest or other legal actions are requested here. Such fund
shall be constituted with the Maritime Court in which legal proceedings are instituted or which has
jurisdiction in the locality where the arrest or other legal actions are requested in accordance with
chapter 21.

A fund is deemed constituted for all persons entitled to invoke limitation of liability. Any fund is
only deemed constituted for the payment of claims subject to limitation of liability. (771/2000)

After a limitation fund has been constituted in Finland, any action against a claim subject to
limitation of liability may only be brought in connection with limitation proceedings. The same also
applies to any legal action on whether the creator of the fund is entitled to limitation of liability, as
well as any action on the distribution of the fund.

The creator of a fund, his or her insurer and anyone with a claim subject to limitation of liability
are entitled to initiate limitation proceedings.

Provisions on limitation funds and limitation proceedings are laid down in chapter 12.

Section 8

Impact of the constitution of a limitation fund

No person who has brought a claim against a limitation fund constituted in Finland or in any other
State Party to the Protocol may, on the grounds of such a claim, be granted an arrest, any other
precautionary measure or attachment against a ship or other property belonging to a person on
behalf of whom the fund has been constituted and who is entitled to limitation of
liability. (771/2000)

After a limitation fund has been constituted in Finland, Norway, Sweden or Denmark, no ship or
other property belonging to a person on behalf of whom the fund has been constituted and who is
entitled to limitation of liability may be subjected to arrest, any other precautionary measure or
attachment for a claim which may be raised against the fund. If such precautionary m easure or
attachment has already been enforced, this measure shall be revoked. Any security provided to
avoid arrest, any other precautionary measure or attachment or to revoke such measure shall be
released.
If a limitation fund has been constituted in a state other than those mentioned in subsection 2,
which has acceded to the Convention mentioned in subsection 1, it is possible to deny any request
for arrest, another precautionary measure or attachment, revoke such measure or release any
security provided. Such request shall be denied and, where the fund was constituted before the
measure was initiated or the security was provided, any measure shall be revoked and any
security provided shall be released if the fund was constituted:

1) at the port where the occurrence on which the claim is based took place or, if it took place
out of port, at the first port of call thereafter;

2) at the port of disembarkation in respect of a claim for loss of life or personal injury of a
person on board; or

3) at the port of discharge in respect of a claim for damage to cargo.

The provisions of subsections 1 and 3 apply correspondingly where a limitation fund was
constituted in Finland in accordance with this Act or, as long as Finland is party to the 1976
Convention, in any other State Party to 1976 Convention but not party to its Protocol. The
provisions of subsection 1 and 3 may be applied correspondingly if it is proven that a limitation
fund constituted in a state not party to the Convention or Protocol mentioned above c an be
assimilated to a limitation fund referred to in section 7. (771/2000)

The provisions of this section only apply if a claimant may bring claims against a limitation fund in
the court or with the authority which manages the limitation fund, and if he o r she has the ability
to withdraw the amount of his or her claim from the fund and transfer it to another country.

Section 9

Invoking limitation of liability without constitution of a limitation fund

Limitation of liability may be invoked even if no limitation fund were constituted.

When action against a claim subject to limitation of liability is brought, the court shall, if no
limitation fund has been constituted, only consider the claim that the case concerns when applying
the provisions of this chapter. If the defendant wishes that another claim in respect of which the
same amount of liability applies also be considered for limitation of liability, a condition to this
effect shall be included in the judgement.

In respect of enforcement of a judgement that does not include a condition referred to in

subsection 2, the provisions of the Execution Act apply. If the judgement includes such condition,
the judgement may be enforced regardless, unless a limitation fund is constituted and the court
finds, by virtue of section 8, that the application for enforcement of the judgement is to be
rejected.

Where no limitation fund has been constituted, the parties may refer the question of the level and
apportionment of the amount of liability to the Average Adjuster in compliance with the provisions
of section 7 of chapter 17 on average adjustment. (480/2021)

Section 10

Warships, state-owned ships and drill ships (771/2000)

The limits of liability of a warship or any other ship which was, at the time of occurrence of t he
damage on which the claim is based, owned or operated by a state and which is used only on
government non-commercial service shall not be lower than those of a ship of 5,000 gross
tonnage. If a claim concerns compensation for damage resulting from the special characteristics or
special operation of such ship, however, no right to limitation of liability exists. Notwithstanding,
the provisions of this subsection do not apply to vessels primarily used for ice-breaking or salvage
operations. (771/2000)

The limit of liability of a ship constructed or adapted for the purpose of extracting seabed natural
resources by drilling is SDR 36 million for claims referred to in subsection 2 of section 5 and
SDR 60 million for those referred to subsection 3 of section 5, where such claims concern damage
caused while using the ship for drilling operations. Provisions on compensation for oil pollution
damage are laid down separately. (771/2000)

Any platforms constructed for the purpose of exploring or extracting the natural resources of the
seabed are considered ships in the context of applying the provisions of this chapter. However, the
limits of liability in respect of such ships shall always be equivalent to the amounts laid down in
subsection 2.

Section 11

Scope of application of the chapter

The provisions of sections 1–10 apply where limitation of liability is sought in a Finnish court or
with another Finnish authority. If the claim is referred to in paragraph 5 of section 3 and if the law
of a state which has acceded to the Convention mentioned in subsection 1 of section 8 is to be
applied to the contract of service, the question of application of limitation of liability and the limit
of liability shall, however, be resolved under said law.

The provisions of sections 1–10 do not prevent the application of any provisions otherwise in force
on adjustment of the liability of a party liable for damages.

Chapter 10 (421/1995)

Liability for oil pollution damage

Section 1 (421/1995)

Definitions

For the purposes of this chapter:

1) oil means crude oil and all oil products derived thereof;

2) persistent oil means any persistent mineral oil such as crude oil, heavy fuel and diesel oil,
lubricating oil and any oils of comparable persistence;

3) oil pollution damage means pollution damage caused outside the ship by contamination
resulting from the escape of oil from the ship as well as loss or damage caused by preventive
measures; however, any loss or damage related to impairment of the environment other than
loss of profit is limited to costs of reasonable measures of reinstatement of the environment
actually undertaken or to be undertaken;

4) preventive measures means any appropriate measures taken after an incident has occurred to
prevent or minimise pollution damage;

5) incident means any occurrence, or series of occurrences having the same origin, which causes
oil pollution damage or creates a grave and imminent threat of causing such damage;

6) owner means the person registered as the owner of the ship or, in the absence o f
registration, the person owning the ship; if a company is registered as the operator of a state-
owned ship, such company is considered the ship’s owner;

7) ship means any watercraft of any type whatsoever and any other floating craft propelled by
its own engines or suitable for towing by another ship;
8) 1992 Liability Convention means the International Convention of 1969 on Civil Liability for Oil
Pollution Damage (Treaty Series of the Statute Book of Finland 80/1980), as amended by the
Protocol of 1992 to amend the International Convention of 1969 on Civil Liability for Oil
Pollution Damage;

9) Contracting State means a state which has acceded to the 1992 Liability Convention; and

10) Finnish exclusive economic zone means the area defined in the Act on the Exclusive Economic
Zone of Finland (1058/2004). (686/2008)

Section 2 (421/1995)

Scope of application

The provisions of this chapter apply to oil pollution damage caused in Finland or within the Finnish
exclusive economic zone, or in another Contracting State or within the exclusive economic zone of
another Contracting State, if such damage resulted from the escape of persistent oil from a ship
constructed or adapted for the carriage of persistent oil in bulk as cargo. Notwithstanding, the
provisions only apply to a ship capable of carrying persistent oil and other cargoes when it is
actually carrying persistent oil in bulk as cargo and during any voyage following such carriage
unless it is proven that it has no residues of such carriage of persistent oil in bulk aboard. The
provisions also apply to any damage and cost of preventive measures, wherever taken, to prevent
any contamination resulting from above-mentioned oil pollution damage threatening Finland or the
Finnish exclusive economic zone, or the territory or exclusive economic zone of another
Contracting State. (686/2008)

The provisions of subsection 1 on the exclusive economic zone of another Contracting State also
apply, if a Contracting State has not established such a zone, to an area beyond and adjacent to
the territorial sea of that Contracting State in accordance with international law, which extends not
more than 200 nautical miles from the baselines used to measure the breadth of its territorial sea.

Provisions on application of this Act to oil pollution damage caused by any warship or any other
ship used only on government non-commercial service, or on any vessel other than those referred
to in subsection 1, as well as to oil pollution damage resulting from non-persistent oil, are laid
down in section 16. The provisions of section 17 apply to oil pollution damage caused by any ship
constructed or adapted for the carriage of persistent oil in bulk as cargo, which has no link to any
Contracting State referred to in subsection 1.
The provisions of this chapter apply notwithstanding other provisions on the application of foreign
law in a Finnish court.

No provision of this chapter applies where its application would conflict with Finland’s obligations
arising from international treaties.

Section 3 (421/1995)

Liability for oil pollution damage

The owner of a ship is liable to compensate for any oil pollution damage referred to in subsections
1 and 3 of section 2 even when such damage was not caused personally by the owner or by
anyone operating under his or her responsibility. Where an incident consists of several occurrences
having the same origin, the owner of the ship at the time of the first such occurrence is liable for
any damage.

Notwithstanding, the owner of the ship is exempt from liability if he or she proves that the damage
was caused:

1) by an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional,

inevitable and irresistible character;

2) in whole by an act or omission done with intent to cause damage by a third party; or

3) in whole by the fault or negligence of any authority responsible for the maintenance of lights
or other navigational aids in the exercise of that function.

Compensation shall also be paid under this chapter to anyone obliged to take preventive measures
on the basis of a provision issued by virtue of law.

If the injured party contributed to the damage, the damages may be adjusted within reason.

Section 4 (421/1995)

Channelling of liability and right of recourse

No action for compensation for any oil pollution damage referred to in subsections 1 and 3 of
section 2 may be brought against the owner of a ship otherwise than by virtue of this chapter.

No claim for compensation for any oil pollution damage referred to in subsections 1 and 3 of
section 2 may be made against:
1) any person in the service of the owner of the ship or any agent of the owner, or any member
of the crew;

2) the pilot or any other person who, without being a member of the crew, performs work for
the ship;

3) any manager who is not the owner of the ship, or any other person operating the ship in lieu
of the owner, any charterer, shipper, consignor, consignee or cargo owner;

4) any person performing salvage operations with the consent of the ship’s owner, manager or
master or on the instructions of a public authority;

5) any person taking preventive measures; or

6) any person who is in service or an agent of those mentioned in paragraphs 2 –5;

unless that person has caused the damage intentionally or through gross negligence, knowing that
such damage was likely to occur.

No claim for compensation for damage caused by any person referred to in paragraphs 1, 2 and
4–6 of subsection 2 above may be made against the person who caused the damage, unless that
person has caused the damage intentionally or through gross negligence, knowing that such
damage was likely to occur. In such cases, however, the provisions of the Tort Liability Act and the
Employment Contracts Act (320/1970) on the liability of employees or public officials for damages
apply to awarding compensation payable by an employee or public official.

Section 5 (421/1995)

Limitation of liability and amounts of liability

The owner of a ship is entitled to limit his or her liability under this chapter for each incident to an
amount equivalent to SDR 4,510,000 for a ship with a unit of tonnage not exceeding 5,000. If the
unit of tonnage is in excess of 5,000, the limit of liability is raised by SDR 631 for each additional
unit of tonnage. Notwithstanding, the maximum amount of liability is SDR 89,770,000. The right to
limitation of liability does not apply to any interest or legal costs. (336/2002)

The owner of a ship is not entitled to limit his or her liability if he or she has personally caused the
damage intentionally or through gross negligence, knowing that such damage was likely to occur.

‘Ship’s tonnage’ refers to the gross tonnage calculated in accordance with the provisions of Annex
I to the International Convention of 1969 on Tonnage Measurement of Ships.
Section 6 (421/1995)

Constitution of a limitation fund

The owner of a ship may only limit his or her liability as provided in subsection 1 of section 5 if he
or she or his or her insurer, or any other person acting on his or her behalf, constitutes a limitation
fund equivalent to the amount of the owner’s liability in accordance with chapter 12 or
corresponding law in force in another Contracting State.

In Finland, such limitation fund is constituted with the court in which legal proceedings were or
may be instituted in respect of damages in accordance with section 3a of chapter 21. After a
limitation fund is constituted, the owner of a ship or any other party involved may bring an action
on a case of limitation in order to determine the liability and distribute the fund.

Section 7 (421/1995)

Distribution of a limitation fund

Should the amount of liability provided in subsection 1 of section 5 be insufficient to cover

compensation for those entitled to damages, the funds in the limitation fund are distributed in
proportion to their claims.

Section 8 (421/1995)

Amounts of compensation payable from a limitation fund in certain cases

If any person has paid compensation for oil pollution damage referred to in subsections 1 and 3 of
section 2 prior to the distribution of the limitation fund, he or she will subrogate the injured party
in respect of the amount paid in accordance with this Act or corresponding law in force in another
Contracting State.

If the owner of a ship or any other person proves that he or she will have to pay, at a later date,
any compensation that he or she could have demanded to be paid out of the limitation fund under
subsection 1, had the compensation been paid prior to the distribution of the limitation fund, the
court may order funds sufficient for this purpose to be set aside to enable such person to bring his
or her claim against the limitation fund at a later date.
If the owner of a ship has voluntarily paid costs or suffered any loss or damage due to preventive
measures, he or she is entitled to the same compensation from the limitation fund as any other
injured party.

Section 9 (421/1995)

Impact of a limitation fund

Where a limitation fund was constituted in accordance with section 6 and the case is not referred
to in subsection 2 of section 5, the owner of a ship is not liable with his or her other property for
any damages that can be claimed from the limitation fund. The provisions of this subsection do
not, however, apply to any interest or legal costs.

Where property belonging to the owner of the ship has been arrested or subjected to another
measure to secure attachment for a claim which may only be raised against a limitation fund, such
arrest or other precautionary measure shall be revoked after a limitation fund has been
constituted. If the owner has given security to avoid arrest or any other precautionary measure,
the security shall be returned to him or her.

If a limitation fund was constituted in another Contracting State, the provisions of subsections 1
and 2 only apply if an injured party is entitled to bring an action in the court or with the authority
which manages the limitation fund, and if he or she has the ability to receive the contribution due
to him or her from the fund.

Section 10 (991/2018)

Obligation to insure a Finnish ship

For a Finnish ship carrying more than 2,000 tonnes of persistent oil in bulk as cargo, the owner
shall take out and maintain insurance or provide security covering the liability due to the owner by
virtue of this chapter or corresponding law in force in another Contracting State to the amount
mentioned in subsection 1 of section 5. Notwithstanding, a state is not obliged to take out
insurance or provide security.

The insurance or security referred to in subsection 1 above shall be approved by a competent

authority as specified by decree.
When the owner of a ship has fulfilled the obligation referred to in subsection 1, he or she is
entitled to receive a certificate attesting that the obligation has been satisfied from the authority
approving the insurance or security. A state-owned ship is provided with a certificate by the
above-mentioned authority, indicating that the ship is owned by the Finnish Government and that
its liability is covered to the amount mentioned in subsection 1 of section 5. The certificate shall be
carried on board the ship and a copy thereof shall be deposited with the Finnish Transport and
Communications Agency.

Further provisions on the certificates referred to in subsection 3 are issued by decree.

Section 11 (421/1995)

Obligation to insure a foreign ship

Any foreign ship calling on a Finnish port or using port facilities in Finnish waters at the time when
it is carrying more than 2,000 tonnes of persistent oil in bulk as cargo shall have insurance or
security covering the liability of the owner for damage referred to in this chapter to the amount
mentioned in subsection 1 of section 5. The provisions of this subsection do not apply to state-
owned ships.

Any ship referred to in subsection 1 above shall carry on board a certificate attesting that
insurance or security referred to in subsection 1 is in force. If the ship is not registered in any of
the Contracting States, such certificate may be issued by a public authority referred to in
subsection 3 of section 10. If the ship is owned by a state, the ship shall carry on board a
certificate indicating that the ship is owned by the said government and that its liability is covered
to the amount mentioned in subsection 1 of section 5.

Further provisions on the certificates referred to in subsection 2 are issued by decree.

Section 12 (421/1995)

Claims made against insurers

Any person entitled to damages may bring his or her claim for compensation based on insurance
referred to in sections 10 and 11 directly against the insurer.
Notwithstanding, the insurer is not liable for any damage in the cases referred to in subsection 2
of section 3 or when such damage was intentionally caused by the ship’s owner himself or herself.
In no event does the insurer’s liability exceed the amount mentioned in subsection 1 of section 5.

The insurer may, in order to be exempt from liability to anyone other than the ship’s owner, only
invoke the circumstances referred to in subsection 2.

Section 13 (421/1995)

Insurance coverage

Unless otherwise specified by the insurer, insurance is also valid for the owner of a ship as cover
against any liability due to him or her under this chapter or corresponding law in force in another
Contracting State.

Section 14 (421/1995)

Other security

The provisions of sections 12 and 13 on insurance apply correspondingly to any security referred
to in sections 10 and 11.

Section 15 (421/1995)

Supervision of compliance with the obligation to insure

Provisions on supervision of compliance with sections 10 and 11 and on the supervisory authority
are issued by decree.

The supervisory authority is entitled to forbid a ship’s departure and interrupt its passage if the
ship does not carry on board the certificate required under section 10 or 11.

Section 16 (686/2008)

Application of the Act in certain cases

The provisions of this chapter do not apply to any warship or any other ship used only on
government non-commercial service at the time of the incident. Notwithstanding, if such ship has
caused oil pollution damage in Finland or within the Finnish exclusive economic zone, or if
preventive measures have been taken, the following provisions apply: sections 1 and 3 –5 of this
chapter; chapter 19, section 1, subsection 1, paragraph 7, and subsection 4; as well as chapter 21,
section 3a, subsections 3 and 4.

Where a ship which is not referred to in subsection 1 nor subject to subsection 1 of section 2 of
this chapter or chapter 10a or 11 has caused oil pollution damage in Finland or within the Finnish
exclusive economic zone, or if preventive measures have been taken, the following provisions
apply: section 1, subsection 4 of section 2, section 3, and subsection 3 of section 8 of this chapter;
chapter 19, section 1, subsection 1, paragraph 7, and subsection 4; as well as chapter 21, section
3a, subsections 3 and 4. In such cases, chapter 9 applies to the right of the ship’s owner to limit
his or her liability. The amount of liability is determined in accordance with sec tion 5 of chapter
9. (1401/2019)

Subsection 2 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

Where a ship not referred to in subsection 1 nor subject to the provisions of subsection 1 of
section 2 of this chapter or chapter 10a has caused oil pollution damage in Finland or within the
Finnish exclusive economic zone, or if preventive measures have been taken, the following
provisions apply: section 1, subsection 4 of section 2, section 3, and subsection 3 of section 8 of
this chapter; chapter 19, section 1, subsection 1, paragraph 7, and subsection 4; as well as
chapter 21, section 3a, subsections 3 and 4. The same provisions also apply where oil pollution
damage was caused by non-persistent oil. In such cases, the provisions of chapter 9 apply to the
right of the ship’s owner to limit his or her liability. The amount of liability is determined in
accordance with section 5 of chapter 9.

Section 17 (421/1995)

Liability for oil pollution damage on the high seas

If a ship constructed or adapted for the carriage of persistent oil in bulk as cargo causes oil
pollution damage in a non-Contracting State or within the exclusive economic zone of a non-
Contracting State, or on the high seas, the liability for such damage may be limited to the amount
mentioned in subsection 1 of section 5. In such cases, the amount of liability also applies to any
costs arising from preventive measures.
The provisions of subsection 3 of section 8 of this chapter; chapter 9; paragraph 7 of subsection 1
of section 1 and subsection 4 of chapter 19; and subsections 3 and 4 of section 3a of chapter 21
otherwise apply, as appropriate, to limitation of liability. Where a limitation fund is constituted, it
shall be equivalent to the amount of liability mentioned in subsection 1, and the provisions of
chapter 12 apply thereto. Furthermore, the provisions of subsections 2 and 3 of section 4 also
apply if the limitation fund prevents an arrest, any other precautionary measure or attachmen t
under section 8 of chapter 9.

Section 18 (421/1995)

Reference provisions

Provisions on the time bars for claims for oil pollution damage are laid down in section 1 of chapter
19.

Provisions on the court having jurisdiction over cases involving liability for oil pollution damage are
laid down in section 3a of chapter 21.

Provisions on the enforcement of foreign judgements in cases involving liability for oil pollution
damage and on the impact of a limitation fund constituted abroad on the enforcement of
judgements issued in Finland in cases involving oil pollution damage are laid down in sections 6
and 7 of chapter 22.

Provisions on the right to receive compensation from the International Fund for Compensation for
Oil Pollution Damage are laid down in the Act on the Adoption and Application of Certain Provisions
of the Protocol of 1992 to amend the International Convention of 1971 on the Establishment of an
International Fund for Compensation for Oil Pollution Damage (424/1996).

Provisions on the right to receive compensation from the 2003 International Oil Pollution
Compensation Supplementary Fund are laid down in the Act on the Implementation and
Application of the Provisions of a Legislative Nature in the Protocol of 2003 to the International
Convention of 1992 on the Establishment of an International Fund for Compensation for Oil
Pollution Damage (324/2004). (325/2004)
Chapter 10a (686/2008)

Liability for bunker oil pollution damage

Section 1 (686/2008)

Definitions

For the purposes of this chapter:

1) ship means any watercraft, of any type whatsoever;

2) shipowner means the owner of a ship, including the registered owner, a bareboat charterer, a
ship operator and any person operating the ship in lieu of the ship operator;

3) registered owner means the person or persons registered as the owner of the ship or, in the
absence of registration, the person or persons owning the ship; however, in the case of a ship
owned by a state and operated by a company which is registered as the ship’s operator in
that state, ‘registered owner’ means such company;

4) bunker oil means any hydrocarbon mineral oil, including lubricating oil, used or intended to be
used for the operation or propulsion of the ship, and any residues of such oil;

5) preventive measures means any appropriate measures taken after an incident has occurred to
prevent or minimise pollution damage;

6) incident means any occurrence, or series of occurrences having the same origin, which causes
pollution damage or creates a grave and imminent threat of causing such damage;

7) pollution damage means:

a) loss or damage caused outside the ship by contamination resulting from the escape or
discharge of bunker oil from the ship, wherever such escape or discharge may occur, provided
that compensation for impairment of the environment other than loss of profit from such
impairment shall be limited to costs of reasonable measures of reinstatement actually
undertaken or to be undertaken, and

b) the costs of preventive measures and further loss or damage caused by preventive measures;

8) State Party means a state which has acceded to the International Convention on Civil Liability
for Bunker Oil Pollution Damage (Treaty Series of the Statute Book of Finland 4/2009);
9) Finnish exclusive economic zone means the area defined in the Act on the Exclusive Economic
Zone of Finland.

Section 2 (686/2008)

Scope of application

The provisions of this chapter apply to pollution damage caused by bunker oil in Finland or within
the Finnish exclusive economic zone, or in another State Party or within the exclusive economic
zone of another State Party.

The provisions of this chapter also apply to any damage and cost of preventive measures,
wherever taken, to prevent any contamination resulting from above-mentioned damage
threatening Finland or the Finnish exclusive economic zone, or the territory or exclusive economic
zone of another State Party.

The provisions of subsections 1 and 2 on the exclusive economic zone of another State Party also
apply, if a State Party has not established such a zone, to an area beyond and adjacent to the
territorial sea of that State Party determined by that state in accordance with international law and
extending not more than 200 nautical miles from the baselines from which the breadth of its
territorial sea is measured.

The provisions of this chapter do not apply to warships, naval auxiliary or other ships owned or
operated by a state and used, for the time being, only on non-commercial service.
Notwithstanding, if such ship has caused pollution damage in Finland or within the Finnish
exclusive economic zone, or if preventive measures have been taken, the following provisions
apply: sections 1 and 3–5 of this chapter; chapter 19, section 1, subsection 1, paragraph 7, and
subsection 4; as well as chapter 21, section 3c, subsections 3 and 4.

The provisions of this chapter do not apply to any oil pollution damage under chapter 10 in cases
referred to in subsection 1 of section 2 of the said chapter.

The provisions of this chapter apply notwithstanding any provisions on the application of foreign
law in a Finnish court.

No provision of this chapter apply if application conflicts with Finland’s obligations arising from
international treaties.
Section 3 (686/2008)

Shipowners’ liability for bunker oil pollution damage

The owner of a ship is liable to compensate for any damage referred to in section 2 even when
such damage was not caused personally by the owner or by anyone operating under his or her
responsibility. If an incident consists of several occurrences having the same origin, the owner of
the ship at the time of the first such occurrence is liable for any damage.

If more than one person is liable for damage under subsection 1, their liability is joint and several.

Notwithstanding, the owner of the ship is exempt from liability if he or she proves that the damage
was caused:

1) by an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional,

inevitable and irresistible character;

2) in whole by an act or omission done with intent to cause damage by a third party; or

3) in whole by the fault or negligence of any authority responsible for the maintenance of lights
or other navigational aids in the exercise of that function.

If the injured party intentionally or negligently contributed to the damage, the damages may be
adjusted.

Section 4 (686/2008)

Channelling of liability and right of recourse

No action for compensation for any pollution damage referred to in section 2 may be brought
against the shipowner otherwise than by virtue of this chapter.

No claim for compensation for any pollution damage referred to in section 2 may be made against:

1) any person in the service of the owner or any agent of the owner, or any member of the
crew;

2) the pilot or any other person who, without being a member of the crew, performs work for
the ship;

3) any person performing salvage operations with the consent of the ship’s owner, manager or
master or on the instructions of a public authority;
4) any person taking preventive measures; nor

5) any person who is in service or an agent of those mentioned in paragraphs 2 –4, unless that
person has caused the damage intentionally or through gross negligence, knowing that such
damage was likely to occur.

No claim for compensation for damage caused by any person referred to in paragraphs 1 –5 of
subsection 2 above may be made against the person who caused the damage, unless that person
has caused the damage intentionally or through gross negligence, knowing that such damage was
likely to occur. In such cases, however, the provisions of the Tort Liability Act and the Employment
Contracts Act (55/2001) on the liability of employees or public officials for damages apply to
awarding compensation payable by an employee or public official.

Section 5 (686/2008)

Limitation of liability

The provisions of this chapter do not affect the right of a shipowner or provider of insurance or
other security to limit his or her liability in accordance with the provisions of chapter 9.

Section 6 (991/2018)

Obligation to insure a Finnish ship

The registered owner of a Finnish ship with a gross tonnage in excess of 1,000 entered in the
transport register maintained by the Finnish Transport and Communications Agency or in the
register of ships maintained by the State Department of Åland shall take out and maintain
insurance or other financial security covering the liability of the owner under this chapter or
corresponding law in force in another State Party to the amount referred to in sectio n 5 of chapter
9.
Section 7 (686/2008)

Obligation to insure a foreign ship

Any foreign ship with a gross tonnage in excess of 1,000, calling on a Finnish port or using port
facilities in Finnish waters, shall have insurance or other financial security covering the liability of
the owner for damage under this chapter to the amount referred to in section 5 of chapter 9.

Any ship referred to in subsection 1 above shall carry on board a certificate issued by the
competent public authority or authorised organisation of the State Party in which the ship is
registered, attesting that insurance or other security referred to in subsection 1 is in force. If the
ship is owned by a state, the ship shall carry on board a certificate indicating that the ship is
owned by the said government and that its liability under this chapter is covered to the amount
referred to in section 5 of chapter 9.

Section 8 (991/2018)

Certificates of insurance or security

The Finnish Transport and Communications Agency issues, on application, a certificate attesting
that insurance or security referred to in section 6 is in force to the registered owner of a ship
entered in the transport register or the register of ships maintained by the State Department of
Åland. The Finnish Transport and Communications Agency may also issue a certificate attesting
that the obligation to insure has been satisfied in a case referred to in subsection 1 of section 7, if
the ship is not registered in any of the States Parties.

An account shall be appended to the application, indicating:

1) that the insurance or security covers the liability referred to in this chapter; and

2) that the insurance or security may, during the period of validity of the certificate, cease no
sooner than three months following the date of receipt of written notice of its termination by
the Finnish Transport and Communications Agency, unless the certificate has been submitted
to the Finnish Transport and Communications Agency or a new certificate has been issued to
the ship.

The Finnish Transport and Communications Agency shall withdraw a certificate where the
conditions of issue of the certificate are no longer satisfied.
The certificate shall be carried on board the ship and a copy of the certificate shall be deposited
with the Finnish Transport and Communications Agency. No ship shall be used for maritime
operations without a certificate.

The certificates referred to in this section are issued for a fee as provided in the Act on Criteria for
Charges Payable to the State (150/1992).

Further provisions on the certificates referred to in this section are issued by government decree.

Section 9 (686/2008)

Claims made against insurance or security providers

Any person entitled to damages may bring his or her claim for compensation based o n pollution
damage under this chapter directly against the provider of insurance or security referred to in
sections 6 and 7.

Notwithstanding, the insurance or security provider is not liable to compensate for any damage in
the cases referred to in subsection 3 of section 3 or when such damage was intentionally caused
by the ship’s owner himself or herself.

The insurance or security provider may, in order to be exempt from liability to anyone other than
the ship’s owner, only invoke the circumstances referred to in subsection 2.

The insurance or security provider has, in any event, the right to require the shipowner to be
joined in the proceedings.

Section 10 (991/2018)

Supervision of compliance with the obligation to insure

The Finnish Transport and Communications Agency supervises compliance with sections 6 and 7.

The Finnish Transport and Communications Agency is entitled to forbid a ship’s departure and
interrupt its passage if the ship does not carry on board the certificate of insurance or security
required under section 6 or 7.
Section 11 (686/2008)

Reference provisions

Provisions on the time bars for claims under this chapter are laid down in subsection 1 of section 1
of chapter 19.

Provisions on the court having jurisdiction over cases under this chapter are laid down in section
3c of chapter 21.

Provisions on the enforcement of foreign judgements in cases under this chapter are laid down in
section 8 of chapter 22.

Chapter 11 (1401/2019)

Liability for damage caused by hazardous and noxious substances carried by water

Section 1 (1401/2019)

Definitions

For the purposes of this chapter:

1) ship means any watercraft, of any type whatsoever;

2) owner means the person registered as the owner of the ship or, in the absence of
registration, the person owning the ship; if a company engaged in shipping on a state-owned
ship is entered in the register, such company is considered the ship’s owner;

3) hazardous and noxious substances means:

a) oils carried in bulk referred to in Regulation 1 of Annex I to the Protocol of 1978 relating
to the International Convention of 1973 for the Prevention of Pollution from Ships (Treaty
Series of the Statute Book of Finland 51/1983), hereinafter referred to as the MARPOL
73/78 Convention ,

b) noxious liquid substances carried in bulk referred to in Regulation 1.10 of Annex II to the
MARPOL 73/78 Convention, and those substances and mixtures provisionally categorised
as falling in pollution category X, Y or Z in accordance with Regulation 6.3 of the said
Annex II,
 c) dangerous liquid substances carried in bulk referred to in chapter 17 of the International
Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk
(IBC Code) of the International Maritime Organisation, hereinafter referred to as the
IMO, and the dangerous products for which the preliminary suitable conditions for the
carriage have been prescribed by the flag state administration and po rt administrations
involved in accordance with paragraph 1.1.6 of the said Code,

d) dangerous, hazardous and harmful substances, materials and articles in packaged form
covered by the IMO International Maritime Dangerous Goods Code (IMDG Code),
hereinafter referred to as the IMDG Code,

e) liquefied gases referred to in chapter 19 of the IMO International Code for the
Construction and Equipment of Ships carrying Liquefied Gases in Bulk (IGC Code), and
the products for which preliminary suitable conditions for the carriage have been
prescribed by the flag state administration and port administrations involved in
accordance with paragraph 1.1.6 of the said Code,

f) liquid substances carried in bulk with a flashpoint not exceeding 60 degrees Celsius
measured by a closed-cup test,

g) solid bulk materials possessing chemical hazards covered by the IMO International
Maritime Solid Bulk Cargoes Code (IMSBC Code), hereinafter referred to as the IMSBC
Code, to the extent that these substances are also subject to the provisions of the 1996
IMDG Code, and

h) residues from the previous carriage in bulk of substances referred to in subparagraphs a–

c and e–g;

4) bulk hazardous and noxious substances means any hazardous and noxious substances
referred to in subparagraphs a–c and e–h of paragraph 3;

5) packaged hazardous and noxious substances means any hazardous and noxious substances
referred to in subparagraph d of paragraph 3;

6) damage means:

a) loss of life or personal injury caused by hazardous and noxious substances,

b) loss of or damage to property caused by hazardous and noxious substances outside the
ship carrying those substances,
 c) loss or damage by contamination of the environment caused by the hazardous and
noxious substances; however, any loss or damage related to impairment of the
environment other than loss of profit from such impairment is limited to costs of
reasonable measures of reinstatement of the environment actually undertaken or to be
undertaken, and

d) the costs of preventive measures and further loss or damage caused by preventive
measures;

7) preventive measures means any appropriate measures taken after an incident has occurred to
prevent or minimise damage;

8) incident means any occurrence, or series of occurrences having the same origin, which cau ses
damage or creates a grave and imminent threat of causing such damage;

9) carriage by water means the period from the time when the hazardous and noxious
substances enter any part of the ship’s equipment, on loading, to the time they cease to be
present in any part of the ship’s equipment, on discharge; if no ship’s equipment is used, the
period begins and ends respectively when the hazardous and noxious substances cross the
ship’s rail;

10) HNS Convention means the Protocol of 2010 to the International Convention of 1996 on
Liability and Compensation for Damage in Connection with the Carriage of Hazardous and
Noxious Substances by Sea (1400/2019);

11) State Party means a state which has acceded to the HNS Convention;

12) Finnish exclusive economic zone means the area referred to in the Act on the Exclusive
Economic Zone of Finland;

13) ship’s tonnage refers to the gross tonnage calculated in accordance with the provisions of
Annex I to the International Convention of 1969 on Tonnage Measurement of Ships.

Where it is not reasonably possible to separate damage caused by the hazardous and noxious
substances from that caused by other factors, all such damage is deemed to be caused by the
hazardous and noxious substances.

The provisions of subsection 2 do not apply to oil pollution damage under section 1 of chapter 10
or to damage caused by a radioactive material of class 7 referred to in the IMDG Code or in the
IMSBC Code.

Section 1 as amended by Act 1401/2019 enters into force on a date to be specified by decr ee.
Section 2 (1401/2019)

Scope of application

The provisions of this chapter apply to:

1) any damage caused by hazardous and noxious substances carried as cargo by water in
Finland or in another State Party;

2) any damage by contamination of the environment referred to in subparagraph c of paragraph

6 of subsection 1 of section 1, caused by the carriage of hazardous and noxious substances
by water within the Finnish exclusive economic zone or that of another State Party;

3) any damage caused by hazardous and noxious substances carried as cargo by water, other
than damage by contamination of the environment referred to in section 1, subsection 1,
paragraph 6, subparagraph c, outside the territory of any state, if such damage has been
caused by a substance carried as cargo on board a ship registered in Finland or another State
Party or, in the case of an unregistered ship, on board a ship flying the flag of Finland or
another State Party; and

4) any damage and cost of preventive measures, wherever taken, to prevent such damage as
referred to in paragraphs 1–3.

The provisions of subsection 1 on the exclusive economic zone of another State Party also apply, if
a State Party has not established such a zone, to an area beyond and adjacent to the territorial
sea of that State Party determined by that state in accordance with international law and
extending not more than 200 nautical miles from the baselines from which the breadth of its
territorial sea is measured.

However, the provisions of this chapter do not apply:

1) to any oil pollution damage under chapter 10 in cases referred to in subsection 1 of section 2
of the said chapter;

2) to any damage caused by a radioactive material of class 7 referred to in the IMDG Code or in
the IMSBC Code;

3) to ships not exceeding 200 gross tonnage and carrying hazardous and noxious substances
only in packaged form, while such ships are engaged on voyages between ports located in
Finland;
4) to claims arising out of any contract for the carriage of goods and passengers; nor

5) to the extent that these are incompatible with those of the applicable law relating to workers’
compensation or social security schemes.

The provisions of this chapter do not apply to warships, naval auxiliary or other ships owned or
operated by a state and used, for the time being, only on non-commercial service.
Notwithstanding, if such ship has caused damage referred to in this chapter in Finland or within
the Finnish exclusive economic zone, or if preventive measures have been taken, the followin g
provisions apply: sections 1 and 3–5 of this chapter; chapter 19, section 1, subsection 1,
paragraph 8, and subsection 5; as well as chapter 21, section 3e, subsections 3 and 4.

The provisions of this chapter do not apply if application conflicts with Finland’s obligations arising
from international treaties.

Section 2 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 3 (1401/2019)

Liability for damage caused by hazardous and noxious substances

The owner of a ship is liable to compensate for any damage referred to in section 2 even when
such damage was not caused personally by the owner or by anyone operating under his or her
responsibility. If an incident consists of several occurrences having the same origin, the owner of
the ship at the time of the first such occurrence is liable for any damage.

If more than one owner is liable for damage under subsection 1, their liability is joint and several.

Notwithstanding, the owner of the ship is exempt from liability if he or she proves that:

1) the damage resulted from an act of war, hostilities, civil war, insurrection or a natural
phenomenon of an exceptional, inevitable and irresistible character;

2) the damage was wholly caused by an act or omission done with intent t o cause damage by a
third party;

3) the damage was wholly caused by the fault or negligence of any authority responsible for the
maintenance of lights or other navigational aids in the exercise of that function; or

4) the failure of the consignor or any other person to furnish information concerning the
hazardous and noxious nature of the substances shipped either has caused the damage,
 wholly or partly, or has led the owner not to obtain insurance in accordance with section 10 or
11; however, the owner is only exempt from liability if neither the owner nor those in his or
her service or his or her agents knew or ought reasonably to have known of the hazardous
and noxious nature of the substances shipped.

If the injured party intentionally or negligently contributed to the damage, the damages may be
adjusted.

Section 3 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 4 (1401/2019)

Channelling of liability and right of recourse

No action for compensation for any damage referred to in section 2 may be brought against the
shipowner otherwise than by virtue of this chapter.

No claim for compensation for any damage referred to in section 2 may be made against:

1) any person in the service of the owner or any agent of the owner, or any member of the
crew;

2) the pilot or any other person who, without being a member of the crew, performs work for
the ship;

3) any manager who is not the owner of the ship, or any other person operating the ship in lieu
of the owner, any charterer, shipper, consignor, consignee or cargo owner;

4) any person performing salvage operations with the consent of the owner, manager or master
or on the instructions of a public authority;

5) any person taking preventive measures; nor

6) any person who is in service or an agent of those mentioned in paragraphs 2–5, unless that
person has caused the damage intentionally or through gross negligence, knowing that such
damage was likely to occur.

By way of derogation from subsection 2, however, a claim for compensation may be made against
a consignor or any other person who failed to furnish information concerning the hazardous and
noxious nature of the substances shipped, which has led the owner being exempt from liability in
accordance with section 3, subsection 3, paragraph 4.
No claim for compensation for damage caused by any person referred to in paragraphs 1, 2 and
4–6 of subsection 2 above may be made against the person who caused the damage, unless that
person has caused the damage intentionally or through gross negligence, knowing that such
damage was likely to occur. In such cases, however, the provisions of the Tort Liability Act and the
Employment Contracts Act on the liability of employees and public officials for damages apply to
awarding compensation payable by an employee and public official.

Section 4 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 5 (1401/2019)

Limitation of liability and amounts of liability

The owner of a ship is entitled to limit his or her liability under this chapter in respect of damage
caused by bulk hazardous and noxious substances for each incident to an amount equivalent to
SDR 10,000,000 for a ship with a unit of tonnage not exceeding 2,000. If the unit of tonnage is in
excess of 2,000, the limit of liability is raised by SDR 1,500 for each additional unit of tonnage
from 2,001 to 50,000 units. If the unit of tonnage is in excess of 50,000, the limit of liability is
raised by another SDR 360 for each additional unit of tonnage in excess of 50,000.
Notwithstanding, the maximum amount of liability is SDR 100,000,000.

The owner of a ship is entitled to limit his or her liability under this chapter in respect of damage
caused by packaged hazardous and noxious substances for each incident to an amount equivalent
to SDR 11,500,000 for a ship with a unit of tonnage not exceeding 2,000. If the unit of tonnage is
in excess of 2,000, the limit of liability is raised by SDR 1,725 for each additional unit of tonnage
from 2,001 to 50,000 units. If the unit of tonnage is in excess of 50 000, the limit of liability is
raised by another SDR 414 for each additional unit of tonnage to 50,000 units. Notwithstanding,
the maximum amount of liability is SDR 115,000,000.

The provisions of subsection 2 also apply to any damage caused by both packaged and bulk
hazardous and noxious substances and to any damage in respect of which it is not possible to
determine whether the damage was caused by packaged or bulk hazardous and noxious
substances.

The right to limitation of liability does not apply to any interest or legal costs.

The owner of a ship is not entitled to limit his or her liability if he or she has personally caused the
damage intentionally or through gross negligence, knowing that such damage was likely to occur.
Section 5 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 6 (1401/2019)

Constitution of a limitation fund

The owner of a ship may only limit his or her liability as provided in subsections 1 and 2 of section
5 if he or she or his or her insurer, or any other person acting on his or her behalf, constitutes a
limitation fund equivalent to the amount of the owner’s liability in accordance with chapter 12 or
corresponding law in force in another Contracting State.

In Finland, such limitation fund is constituted with the Court in which legal proceedings were or
may be instituted in respect of damages in accordance with section 3e of chapter 21. After a
limitation fund is constituted, the owner of a ship or any other party involved may bring an action
on a case of limitation in order to determine the liability and distribute the fund.

Section 6 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 7 (1401/2019)

Distribution of a limitation fund

Should the amount of liability provided in subsections 1 and 2 of section 5 be insufficient to cover
compensation for those entitled to damages, the funds in the limitation fund are distributed in
proportion to the amounts of their claims. Notwithstanding, claims in respect of death or personal
injury have priority over other claims to the extent that the aggregate of such claims does not
exceed two thirds of the total amount of liability provided in subsections 1 and 2 of section 5.

Section 7 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 8 (1401/2019)

Amounts of compensation payable from a limitation fund in certain cases

If any person has paid compensation for damage caused by the carriage of hazardous and noxious
substances by water referred to in section 2 prior to the distribution of the limitation fund, he or
she will subrogate the injured party in respect of the amount paid in accordance with this Act or
corresponding law in force in another State Party.
If the owner of a ship or any other person proves that he or she will have to pay, at a later date,
any compensation that he or she could have demanded to be paid out of the limitation fund under
subsection 1, had the compensation been paid prior to the distribution of the limitation fund, the
court may order funds sufficient for this purpose to be set aside to enable such person to bring his
or her claim against the limitation fund at a later date.

If the owner of a ship has v oluntarily paid costs or suffered any loss or damage due to preventive
measures, he or she has the same right to compensation from the limitation fund as any other
injured party.

Section 8 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 9 (1401/2019)

Impact of a limitation fund

If a limitation fund was constituted in accordance with section 6 and the case is not referred to in
subsection 5 of section 5, the owner of a ship is not liable with his or her other property for any
damages that can be claimed from the limitation fund. The provisions of this subsection do not,
however, apply to any interest or legal costs.

If property belonging to the owner of a ship has been arrested or subjected to another measure t o
secure attachment for a claim which may only be raised against a limitation fund, such arrest or
other precautionary measure shall be revoked after a limitation fund has been constituted. If the
owner has given security to avoid arrest or any other precautionary measure, the security shall be
returned to him or her.

If a limitation fund was constituted in another State Party, subsections 1 and 2 only apply if an
injured party is entitled to bring an action in the court or with the authority which manages the
limitation fund and has the ability to receive the contribution due to him or her from the fund.

Section 9 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 10 (1401/2019)

Obligation to insure a Finnish ship

The registered owner of a Finnish ship carrying hazardous and noxious substances as cargo shall
take out and maintain insurance or other financial security covering the liability of the owner under
this chapter or corresponding law in force in another State Party to the amount referred to in
subsections 1 and 2 of section 5.

Section 10 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 11 (1401/2019)

Obligation to insure a foreign ship

Any foreign ship carrying hazardous and noxious substances as cargo while calling on a Finnish
port or using port facilities in Finnish waters shall have insurance or other financial security
covering the liability of the owner for damage under this chapter to the amount referred t o in
subsections 1 and 2 of section 5.

Any ship referred to in subsection 1 above shall carry on board a certificate attesting that
insurance or security referred to in subsection 1 is in force. If the ship is owned by a state, the
ship shall carry on board a certificate indicating that the ship is owned by the said government and
that its liability under this chapter is covered to the amount referred to in subsections 1 and 2 of
section 5.

Section 11 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 12 (1401/2019)

Certificates of insurance or security

The Finnish Transport and Communications Agency issues, on application, a certificate attesting
that insurance or security referred to in section 10 is in force to the owner of a ship entered in the
transport register or the register of ships maintained by the State Department of Åland. The
Finnish Transport and Communications Agency may also issue a certificate attesting that the
obligation to insure has been satisfied in a case referred to in subsection 1 of section 11, if the
ship is not registered in any of the States Parties.

An account shall be appended to the application, indicating that such insurance or security:

1) covers the liability referred to in this chapter; and

2) may, during the period of validity of the certificate, cease no sooner than three months
following the date of receipt of written notice of its termination by the Finnish Transport and
 Communications Agency, unless the certificate has been submitted to the Finnish Transport
and Communications Agency or a new certificate has been issued to the ship.

The Finnish Transport and Communications Agency shall withdraw a certificate where the
conditions of issue of the certificate are no longer satisfied.

The ship’s master is obliged to ensure that the certificate is carried on board the ship, and a copy
thereof shall be deposited with the Finnish Transport and Communications Agency. No ship shall
be used for water traffic without a certificate.

The certificates referred to in this section are issued for a fee. Provisions on such fees are laid
down in the Act on Criteria for Charges Payable to the State.

Further provisions on the certificates referred to in this section and their application procedure
may be issued by government decree.

Section 12 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Section 13 (1401/2019)

Claims made against insurance or security providers

Any person entitled to damages may bring his or her claim for compensation based on damage
under this chapter directly against the provider of insurance or security referred to in sections 10
and 11.

Notwithstanding, the insurance or security provider is not liable to compensate for any damage in
the cases referred to in subsection 3 of section 3 or if such damage was intentionally caused by
the ship’s owner himself or herself. In no event does the liability of the insurance or security
provider exceed the amount referred to in subsections 1 and 2 of section 5.

The insurance or security provider may, in order to be exempt from liability to anyone other than
the ship’s owner, only invoke the circumstances referred to in subsection 2.

The insurance or security provider has, in any event, the right to require the shipowner to be
joined in the proceedings.

Section 13 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Section 14 (1401/2019)

Reference provisions

Provisions on the time bars for claims under this chapter are laid down in subsection 1 of section 1
of chapter 19.

Provisions on the court having jurisdiction over cases under this chapter are laid down in section
3e of chapter 21.

Provisions on the enforcement of foreign judgements in cases under this chapter and on the
impact of a limitation fund constituted abroad on the enforcement of judgements issued in Finland
in cases under this chapter are laid down in sections 9 and 10 of chapter 22.

Provisions on the right to receive compensation from the International Hazardous and Noxious
Substances Fund referred to in Article 13 of the HNS Convention are laid down in the Act on the
Protocol of 2010 to the International Convention of 1996 on Liability and Compensation for
Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea
(1400/2019).

Section 14 as amended by Act 1401/2019 enters into force on a date to be specified by decree.

Chapter 11 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

Chapter 11

Liability for nuclear damage

Section 1

Liability for nuclear damage caused by a ship

Provisions on liability arising out of nuclear damage are laid down in the Nuclear Liability Act
(484/1972).
Chapter 11a (860/2016)

Liability for removal of wrecks resulting from maritime casualties

Section 1 (860/2016)

Application of the Nairobi Convention in Finland

Provisions on the removal of wrecks resulting from maritime casualties are set forth in the Nairobi
International Convention of 2007 on the Removal of Wrecks (Treaty Series of the Statute Book of
Finland 13–14/2017), hereinafter referred to as the Nairobi Convention .

The Nairobi Convention and the provisions of this chapter apply in Finland and in the Finnish
exclusive economic zone. The provisions of the Nairobi Convention and this chapter concerning the
obligations of the registered owner, master and operator of a ship also apply to Finnish ships in
the exclusive economic zone of another State Party and in the corresponding area referred to in
paragraph 1 of Article 1 of the Convention.

The provisions of this chapter do not apply where the provisions of chapter 10, 10a or 11 apply to
the removal of wrecks resulting from maritime casualties. (1401/2019)

Subsection 3 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

The provisions of this chapter do not apply where the provisions of chapter 10 or 10a apply to the
removal of wrecks resulting from maritime casualties.

The Act on Oil Pollution Response (1673/2009) applies to the prevention of risks of oil and
chemical spills relating to wrecks resulting from maritime casualties.

Section 2 (991/2018)

Reporting obligation of the ship’s master and operator

If a Finnish ship has been involved in a maritime casualty resulting in a wreck, the ship’s master or
operator shall submit a report under Article 5 of the Nairobi Convention without delay to the
Finnish Transport and Communications Agency or, if the wreck is in the Convention area of
another State Party, to the competent authority of the said State Party.
The Finnish Transport and Communications Agency shall notify the relevant maritime and
environmental authorities of any report submitted to it by virtue of subsection 1 and of any report
referred to in Article 5 of the Nairobi Convention submitted to it.

Section 3 (991/2018)

Warning and locating of a wreck

Upon receipt of a report referred to in section 2 or Article 5 of the Nairobi Convention, the Finnish
Transport and Communications Agency shall warn mariners and the states concerned of the nature
and location of the wreck without delay in accordance with Article 7 of the Nairobi Convention.

If there is reason to believe that a wreck poses a hazard, the Finnish Transport and
Communications Agency shall advise the registered owner to take all practicable steps to establish
the precise location of the wreck and set a deadline for this purpose. If the registered owner fails
to establish the location within the deadline set, the Finnish Transport and Communications
Agency shall take all practicable steps to locate the wreck at the expense of the registered owner.

Section 4 (991/2018)

Determination of hazard posed by a wreck and marking of the wreck

Upon becoming aware of a wreck, the Finnish Transport and Communications Agency shall
determine whether the wreck poses a hazard in accordance with Article 6 of the Nairobi
Convention. In order to determine the matter, it shall request the Finnish Environment Institute
and the Finnish Defence Forces to provide an assessment of the hazard posed by the wreck.

If the wreck is considered to pose a hazard under subsection 1, the Finnish Transport and
Communications Agency shall take all reasonable steps to mark the wreck.

Section 5 (991/2018)

Measures concerning the removal of a wreck

If the wreck is considered to pose a hazard under section 4, the Finnish Transport and
Communications Agency shall immediately inform the registered owner and, if the ship is flying a
foreign flag, also the competent authority in the state of the ship’s registry.
The Finnish Transport and Communications Agency shall set a reasonable deadline within which
the registered owner must remove the wreck and inform the owner in writing of the deadline as
provided in paragraph 6 of Article 9 of the Nairobi Convention.

If the wreck is considered to pose a hazard under section 4, the registered owner shall provide the
Finnish Transport and Communications Agency with evidence of insurance or other security
referred to in section 7.

In order to ensure the safety and protection of the marine environment, the Finnish Transport and
Communications Agency may lay down the necessary conditions for the removal of the wreck in
accordance with paragraph 4 of Article 9 of the Nairobi Conv ention and intervene in the removal in
accordance with paragraph 5 of the said Article. Prior to making a decision on the matter, the
Finnish Transport and Communications Agency shall consult the Finnish Environment Institute and
the Finnish Defence Forces.

The Finnish Transport and Communications Agency may remove a wreck at the expense of the
registered owner in the cases referred to in paragraphs 7 and 8 of Article 9 of the Nairobi
Convention when the wreck is located in Finland or within the Finnish exc lusive economic zone.

The Finnish Transport and Communications Agency is entitled to receive any necessary executive
assistance from the Finnish Defence Forces, Finnish Customs and rescue departments to perform
the functions under this section.

Section 6 (860/2016)

Obligation to insure

For a Finnish ship of 300 gross tonnage or more, the registered owner shall take out and maintain
insurance or other security covering the liability under Article 10 of the Nairobi Convention to the
amount referred to in subsection 1 of section 5 of chapter 9.

The obligation to take out and maintain insurance or other security referred to in subsection 1
above also applies to any foreign ship of 300 gross tonnage or more, if the ship calls on a Finnish
port or uses port facilities in Finnish waters.

The provisions of subsections 1 and 2 above do not apply to warships or other ships owned or
operated by a state and used only on non-commercial service.
Section 7 (991/2018)

Certificates of insurance or security

The Finnish Transport and Communications Agency issues, on application, a certificate attesting
that insurance or security referred to in section 6 is in force to the registered owner of a ship
entered in the Finnish register of ships. The Finnish Transport and Communications Agency may
also issue a certificate attesting that the obligation to insure has been satisfied if the ship is not
registered in any of the States Parties to the Nairobi Convention.

The Finnish Transport and Communications Agency shall withdraw a c ertificate where the
conditions of issue of the certificate are no longer satisfied.

The ship’s master is obliged to ensure that the certificate referred to in subsection 1 is carried on
board the ship, and a copy thereof shall be deposited with the Finnish Transport and
Communications Agency. No ship shall be used for maritime operations without a certificate.

The certificates referred to in this section are issued for a fee as provided in the Act on Criteria for
Charges Payable to the State.

Further provisions on the certificates referred to in this section may be issued by government
decree.

Section 8 (991/2018)

Implementation

Any decision made by the Finnish Transport and Communications Agency by virtue of sections 3 –5
may be implemented immediately even if it has not become final, unless otherwise ordered in the
decision or by the appeal authority.
Chapter 12

Limitation fund and limitation proceedings

Section 1

Scope of application of the chapter

The provisions of this chapter apply to any limitation fund constituted in accordance with section 7
of chapter 9 (the limitation fund ) and to any limitation fund constituted in accordance with section
6 of chapter 10 or section 6 of chapter 11. (1401/2019)

Subsection 1 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

The provisions of this chapter apply to any limitation fund constituted in accordance with section 7
of chapter 9 (hereinafter referred to as the limitation fund ) and, as appropriate, to any limitation
fund constituted in accordance with section 6 of chapter 10. (421/1995)

‘Limitation proceedings’ means legal proceedings to determine liability and its limitation, the claims
filed as well as the distribution of the fund.

Subject to the provisions of this chapter, the provisions applicable to maritime litigation under
chapter 21 apply to limitation proceedings.

Section 2

Fund size

The size of any limitation fund under this Act shall be equivalent to:

1) the aggregate of the amounts of money constituting the limit of liability under section 5 of
chapter 9 for claims arising out of the same occurrence, in respect of which limitation of
liability is sought; and

2) interest on the amounts referred to in paragraph 1 above for the period between the dates of
occurrence and constitution of the fund, calculated in accordance with section 3 of the
Interest Act.

The size of any limitation fund in respect of oil pollution damage shall be equivalent to the amount
of liability provided in section 5 of chapter 10. (421/1995)
The size of any limitation fund in respect of damage caused by hazardous and noxious substances
shall be equivalent to the amount of liability provided in section 5 of chapter 11. (1401/2019)

Subsection 3 as added by Act 1401/2019 enters into force on a date to be specified by decree.

Section 3

Application for constitution and its explanatory appendix

When a limitation fund is being constituted, a sum of money equivalent to the amount of liability
shall be deposited with the State Provincial Office competent in the seat of the court, or a security
approved by the State Provincial Office shall be provided to cover it.

The applicant shall append to his or her written application details of the reasons on which the
application is based and the names and addresses of all persons who can be expected to wish to
raise claims against the limitation fund.

Section 4

Constitution of a fund

The court shall determine the size of the fund and decide whether the security tendered can be
approved.

In its decision, the court shall, unless there are specific reasons to the contrary, also rule on the
constitution of the limitation fund as well as on any additional amount to be deposited to cover
costs arising from the proceedings and interest, or on the security to be provided for the
equivalent amount. In respect of a limitation fund under chapter 9, the above provisions on
interest only apply to the interest payable for the period following the fund’s constitution.

If the decision indicates that the required amount has been deposited or security has been
provided, the limitation fund is considered to have been constituted on the date of decision.
Otherwise, the fund is considered to have been constituted on the date when the court indicates
on the decision that the amount has been deposited or the security has been lodged.

A decision referred to in subsections 1 and 2 above remains in force until further notice. If the
decision orders a higher amount to be paid to the limitation fund or an additional security to be
provided, the court shall fix a time limit for the creator of the fund to pay the remaining balance or
provide the security. In the event of failure to comply with the order, the court shall determine
that the fund no longer has the impact referred to in section 8 of chapter 9.

Any appeal against decisions referred to in subsections 1, 2 and 4 may be lodged separately.

Section 5

Public notice of the constitution of a fund

When a limitation fund is constituted, the Court shall immediately issue a public notice to this
effect. Such public notice shall invite all claimants to file their claims to the fund within a fixed
period of at least two months. The public notice shall include information on the provisions of this
chapter as well as section 15 of chapter 8 and subsection 3 of section 7 of chapter 9.

The public notice shall be published in the Official Gazette and, at the court’s discretion, in a local
newspaper. If there is reason to do so, a public notice on the constitution of a limitation fund shall
also be issued in another state.

The creator of the limitation fund and its known claimants shall be given a separate notice.

Section 6

Fund administrator

If deemed necessary in view of the nature of the case or other circumstances, the court may
appoint an administrator for a limitation fund. Such administrator shall possess the knowledge and
experience required for the position. In addition to the duties provided in subsection 2 of section
11, the administrator shall also assist the fund in handling matters concerning the fund as well as
dealing with limitation proceedings and in negotiations between parties.

The administrator’s remuneration is determined by the court.

Section 7

Submission of claims

Upon submission of his or her claim, the claimant shall inform the court of the amount of and basis
for the claim. If a court decision has been issued on the claim or separate proceedings on the
claim are pending, this shall also be declared.
Section 8

Late submission

Any claim not filed with the court before a decision on the distribution of the fund has been made
in the court of first instance may only be paid in accordance with the provisions of section 14.

Section 9

Dissolution of a fund

No limitation fund shall be dissolved before the period fixed under subsection 1 of section 5 has
lapsed. After the said fixed period, the fund may be dissolved without a court decision by
agreement between the creator of the fund and the claimants who have brought claims against
the fund.

Section 10

Initiating limitation proceedings

Limitation proceedings commence when the creator of a limitation fund, his or her insurer or a
claimant files an application for distribution of the fund with the court in which the fund was
constituted.

Section 11

Fund meeting

After limitation proceedings have been initiated, the court shall summon the limitation fund
administrator, the creator of the fund, the person initiating the limitation proceedings and the
claimants to a fund meeting. Any other interested person shall also be summoned. The fund
meeting shall deal with liability and its limitation, the amount of liability, as well as any matters
concerning the claims filed.

Prior to the fund meeting, the limitation fund administrator shall review the claims filed and, to th e
extent possible, prepare proposals for decisions on matters to be addressed at the meeting and on
the distribution of the fund. Such proposal shall be submitted to those summoned to the meeting.
If no administrator has been appointed, the court shall undertake these measures.

If at the conclusion of the meeting no objections are raised to the proposal or to any amendments
that may have been made to the proposal at the meeting, the proposal shall be adopted as the
basis for distribution of the fund. Where necessary, the fund meeting may resume at a later date.

If any person wishes to maintain his or her objection at the conclusion of the fund meeting, the
court shall fix a period within which he or she shall request the court to consider the matter
concerning the objection. Should no such request be made within the fixed period, the objection
will be deemed to have lapsed. If the objection is maintained, the court shall decide the matter as
expeditiously as possible.

Section 12

Initiating a separate action

After a request referred to in subsection 4 of section 11 to consider a matter has been made, the
limitation fund administrator shall be summoned to join the proceedings. Where an objection
concerns the right to limit liability or the amount of liability, the creator of the limitation fund shall
also be summoned to join the proceedings. If the objection concerns a claim filed, the claimant
who filed the claim shall be summoned to join the proceedings in addition to the fund
administrator.

Section 13

Advance payment

After the period fixed by virtue of subsection 1 of section 5 above, the court may order that only
part of the claims confirmed for the time being may be paid.

Section 14

Distribution of a fund

After all disputes have been resolved, the Court shall decide on the distribution of the fund.
The court may set aside a specific sum to cover any claims not filed before a decision on the
distribution of the fund is taken up for final proceedings in the court of first instance. This amount
is distributed when all of the claims filed have been considered and no further claims can be
expected to arise.

The limitation fund shall be distributed even if the creator of the fund were not entitled to
limitation of liability. In such cases, the court may, on request, issue a decision on the part of the
claim which is not to be paid out of the fund.

Section 15

Legal effect of a decision

A final decision on the right to limit liability, the amount of liability, the claims filed and the
distribution of the fund is effective in respect of all those entitled to bring claims against the
limitation fund, regardless of whether any claims have been filed.

PART IV

CONTRACTS OF CARRIAGE BY SEA

Chapter 13

Carriage of general cargo

General provisions on the carriage of general cargo

Section 1

Definitions

For the purposes of this chapter:

1) carrier means any person who concludes a contract for the carriage of general cargo by sea
with a shipper;
2) actual carrier means any person who performs the carriage, or part thereof, on behalf of the
carrier;

3) shipper means any person who concludes a contract for the carriage of general cargo by sea
with a carrier;

4) consignor means any person who consigns goods for carriage;

5) transport document means a bill of lading or any other document provided as evidence of a
contract of carriage;

6) Convention means the Protocol of 1968 to Amend the International Convention for the
Unification of Certain Rules of Law Relating to Bills of Lading, 1924 (the ‘Hague-Visby Rules’;
Treaty Series of the Statute Book of Finland 9/1985), and its Protocol of 1979 (Treaty Series
of the Statute Book of Finland 10/1985); and

7) Contracting State means a state bound by the Convention.

Section 2

Scope of application of the chapter

The provisions of this chapter apply to contracts for the carriage of general cargo by sea in
Finland’s domestic trade and in trade between Finland, Norway, Sweden and Denmark. Any
contracts for the carriage of general cargo by sea in domestic trade within Norway, Sweden and
Denmark are subject to the national law of the state in which the carriage is performed.

In any other trade, the provisions apply to contracts for the carriage of general cargo by sea
between two states when:

1) the agreed port of loading is located in a Contracting State;

2) the agreed port of discharge is located in Finland, Norway, Sweden or Denmark;

3) the contract mentions several ports of discharge, one of which is the actual port of discharge
and such port is located in Finland, Norway, Sweden or Denmark;

4) the transport document is issued in a Contracting State; or

5) the transport document stipulates that the provisions of or legislation based on the
Convention must be applied.
Notwithstanding, where the agreed port of loading or the agreed and actual port of discharge is
not located in Finland, Norway, Sweden or Denmark, it may be agreed that the law of another,
specified Contracting State is to be applied to the contract of carriage by sea.

Section 3

Charter-party shipping

The provisions of this chapter do not apply to charter parties concerning full or partial chartering of
ships. However, where a bill of lading is issued under a charter party, the provisions of this chapter
shall apply to the bill of lading when it determines the relations between the carrier and the holder
of the bill of lading.

If a contract provides for carriage of goods by sea in a series of shipments during an agreed
period, the provisions of this chapter apply to each shipment. However, where a shipment is made
under a charter party, the provisions of subsection 1 apply.

Section 4

Contractual stipulations

Any stipulation in a contract of carriage or transport document is null and void to the extent that it
derogates from the provisions of this chapter or those of chapter 19, section 1, subsection 1,
paragraph 4, and subsection 2. Such nullity does not affect the validity of the contract or
document in other respects. A clause assigning benefit of insurance of the goods in favour of the
carrier, or any similar clause, is null and void.

However, none of the provisions referred to in subsection 1 apply to sections 5, 8 –11 and 14–23;
nor do they prevent inclusion of provisions in the contract of carriage regarding general average. A
carrier may also extend his or her responsibilities and obligations under this chapter.

If the Convention or the national law of a Contracting State based thereon is applicable to a
contract of carriage, the transport document shall indicate this and the fact that any ter ms
derogating from the provisions of the Convention or law to the detriment of the shipper, the
consignor or the consignee is null and void.
If it is reasonable to contractually limit the carrier’s liability or extend his or her rights under this
chapter, due to the exceptional nature or state of the goods, or to special circumstances, such a
contract is valid.

Delivery and receipt of goods for carriage

Section 5

Delivery of goods

The consignor shall deliver the goods to the place and at the time indicated by the carrier. The
goods shall be handed over in such a manner and condition that they can be conveniently and
safely loaded on board the ship, stowed, transported and unloaded.

Section 6

Inspection of packaging

The carrier shall reasonably inspect whether the goods are packed so as to prevent any damage to
the goods or risk of harm to persons or property. However, if the goods are delivered for carriage
in a container or similar article of transport, the carrier is not obliged to inspect its interior, u nless
there is reason to suspect that the article has been deficiently packed.

The carrier shall notify the shipper of any deficiencies detected. The carrier is not obliged to carry
the goods if he or she cannot render these fit for carriage with reasonable effort.

Section 7

Dangerous goods

Dangerous goods shall be marked as dangerous in a suitable manner. The shipper shall give the
carrier and the actual carrier to whom the goods are being delivered timely notice of the
dangerous character of the goods and of any precautions that may be necessary.

If the shipper is otherwise aware of the goods being of such nature that the carriage may pose
danger or significant harm to persons, the ship or cargo, he or she shall also give notice thereof.
Section 8

Goods requiring special care

Where the goods require special care, the shipper shall give timely notice thereof and indicate any
measures that may be necessary. Where necessary, such goods shall be marked in a suitable
manner.

Section 9

Receipt for goods received

The consignor is entitled to obtain a receipt for the goods received as and when they are
delivered.

Provisions on the issue of bills of lading and other transport documents are laid down in sections
42–59.

Section 10

Freight

If no freight can be deemed to have been agreed, the freight payable shall be the rate current at
the time of delivery of the goods for carriage. Freight shall be payable when the goods are
received.

The freight for any goods unaccounted for upon completion of carriage shall only b e payable if the
goods were lost as a result of their specific nature, deficient packaging or fault or neglect on the
part of the shipper, or if the carrier has sold the goods on behalf of the owner or unloaded,
rendered harmless or destroyed them in accordance with section 41.

Any prepaid freight shall be refunded, unless the carrier is entitled to the freight under subsection
2.
Section 11

Withdrawal and breach of contract

Where a shipper withdraws from a contract of carriage before the carriage commences, the carrier
is entitled to compensation for loss of freight and any other loss.

If the goods are not delivered in due time, the carrier may cancel the contract of carriage where
the delay constitutes a material breach of contract. Should the carrier wish to cancel the contract,
he or she shall give notice thereof within a reasonable time after the shipper has enquired after it,
but not later than upon receipt of the goods for carriage. Failing this, he or she will forfeit the right
to cancel. If the contract is cancelled, the carrier is entitled to compensation for loss of freight and
any other damage.

If the shipper or consignee requests that the carriage be suspended and the goods be delivered in
a place other than the place of destination, the carrier is entitled to compensation for loss of
freight and any other damage. No suspension of carriage shall be requested where such
suspension would cause material loss or inconvenience to the carrier or to another shipper.

The provisions of subsections 2–4 of section 32 of chapter 14 on the elements relevant to the
determination of compensation apply correspondingly to the carriage of general cargo.

Carriage

Section 12

Carrier’s obligation to protect the cargo owner’s interests

The carrier shall perform the carriage with due diligence and dispatch, care for the goods, as well
as protect the cargo owner’s interests in other respects from receipt to delivery of the goods.

The carrier shall ensure that the ship used for carriage is seaworthy, which also ent ails ensuring
that the ship is properly manned and equipped, and that the holds, refrigerating and cool
chambers and all other parts of the ship in which goods are carried are in good condition to
receive, carry and preserve the goods.

Where the goods have been lost, damaged or delayed, the carrier shall immediately give notice
thereof to the person nominated by the shipper. If notice cannot be given to that person, it shall
be given to the cargo owner or, if unknown, to the shipper. The same shall apply if the carriage
cannot be performed as intended.
Section 13

Deck cargo

Goods may only be carried on deck if such carriage is permitted under the contract of carriage, in
accordance with usage or other custom of the particular trade, or where it is required by an act,
decree or official decision.

If the contract stipulates that the goods shall or may be carried on deck, this shall be indicated on
the transport document. If this is not the case, the carrier shall prove that an agreement for
carriage of goods on deck has been entered into. The carrier may not invoke such an agreement
against a third party who has acquired the bill of lading in good faith.

Provisions on liability for deck cargo are laid down in section 34.

Section 14

Breach of contract by the carrier

The shipper may cancel the contract of carriage due to a delay or some other breach of contract
on the part of the carrier if such breach is material. The shipper shall not cancel the contract after
the goods have been delivered for carriage where restitution of the goods would cause material
loss or inconvenience to another shipper.

Should the shipper wish to cancel the contract, he or she shall give notice thereof within a
reasonable time after he or she can be expected to have been informed of the breach of contract.
Failing this, he or she will forfeit the right to cancel.

Section 15

Interruption of carriage and distance freight

Where a ship used for the carriage of goods is wrecked or condemned following an incident, the
carrier’s obligation to perform the carriage will not, however, cease on the basis thereof.

In the event of an obstacle preventing the ship from reaching the port of discharge to unload the
cargo, or if this cannot be done without unreasonable delay, the carrier may instead choose
another suitable port of discharge.
Sections 38 and 40 of chapter 14 apply to withdrawal from contracts of carriage due to war risk.

Where a part of the carriage has been performed when the contract of carriage is cancelled or
expires, or where the goods are unloaded in a port other than the agreed port of discharge for any
other reason, the carrier is entitled to distance freight according to the provisions of section 21 of
chapter 14.

Section 16

Carrier’s right to act on behalf of the cargo owner

If it becomes necessary to take any particular measures to preserve or carry the goods or
otherwise protect the cargo owner’s interests, the carrier shall request instructions from the cargo
owner.

If time constraints or other circumstances do not allow a request for instructions, or if such
instructions do not arrive in time, the carrier may take the necessary measures on behalf of the
cargo owner and represent the latter in matters concerning the goods. Even if such measure were
not necessary, the cargo owner is bound in respect of any third party acting in good faith.

Notice of such measures taken shall be given according to the provisions of subsection 3 of section
12.

Section 17

Cargo owner’s liability for the measures taken by the carrier

The cargo owner is liable for any measures taken by the carrier and the expenses covered by the
latter due to the cargo. However, if the carrier has acted without instructions, the cargo owner is
not liable for any amount in excess of the value of the goods affected by the measures or
payments at the beginning of the voyage.

Delivery of goods
Section 18

Delivery of goods by the carrier

At the port of destination, the consignee shall take over the goods at the location and time
indicated by the carrier. The goods shall be handed over in such a manner that they can be
conveniently and safely received.

The person entitled to receive the goods has the right to inspect them before receipt.

Section 19

Consignee’s obligation to pay freight and other claims

If goods are delivered against a bill of lading, the consignee is obliged upon receipt of the goods to
pay freight and any other claims that the carrier may have under the bill of lading.

If the goods have been delivered otherwise than against a bill of lading, the consignee is obliged
to pay freight and any other claims according to the contract of carriage only if he or she was
appraised of the claims upon delivery or otherwise realised or ought to have realised that the
carrier had not received payment.

Section 20

Right to retain goods

If the carrier has claims under section 19 or any other claims secured by maritime liens on the
goods under section 9 of chapter 3, he or she is not obliged to release the goods before the
consignee has either paid the claims or provided security therefor. When the goods have been
delivered, the carrier may enforce the security, unless prohibited by a court at the request of the
consignee.

Section 21

Storage of goods

If the goods are not collected within the time indicated by the carrier or otherwise in a reasonable
time, they may be placed in safekeeping on behalf of the consignee.
Notice of storage of goods shall be given in accordance with subsection 3 of section 12. Such
notice shall specify a reasonable period of time after which the goods may be sold or otherwise
disposed of as provided in section 22.

Section 22

Carrier’s disposal of uncollected goods

After the period prescribed under subsection 2 of section 21 has expired, the carrier is entitled to
sell any goods in storage to the extent necessary to cover the costs of sales and claims referred to
in section 20. The carrier shall arrange the sale with due diligence.

If the goods cannot be sold or if it is apparent that the sales costs cannot be covered by the
proceeds, the carrier may take some other suitable action to dispose of the goods.

Section 23

Shipper’s liability for claims

If the goods are delivered to the consignee without payment of any claim against the shipper that
the consignee should have paid, the shipper remains liable for the claim, provided that the delivery
does not cause any damage to the shipper that the carrier ought to have realised.

The carrier is not obliged to sell stored goods to cover any claims against the shipper that the
consignee should have paid. However, if the goods are sold without the claims being covered, the
shipper remains liable for the remaining balance.

Carrier’s liability for damages

Section 24

Period of responsibility

The carrier is responsible for the goods while he or she is in charge of the goods at the port of
loading, during the carriage and at the port of discharge.

The carrier is deemed to be in charge of the goods in accordance with subsection 1 from the time
he or she has received the goods from the consignor, a public authority o r any other party to
whom the goods are to be handed over pursuant to law or regulations applicable at the port of
loading.

The carrier is deemed no longer to be in charge of the goods according to subsection 1:

1) when he or she has delivered the goods to the consignee;

2) in cases where the consignee does not receive the goods from the carrier, when the goods
are placed in storage on behalf of the consignee in accordance with the contract or the law or
usage at the port of discharge; or

3) when the carrier has handed over the goods to a public authority or any other third party to
whom, pursuant to law or regulations applicable at the port of discharge, the goods must be
handed over.

Section 25

Liability for loss of or damage to goods

The carrier is liable for loss resulting from loss of or damage to the goods that took place while the
goods were in his or her charge on board or ashore, unless the carrier proves that neither he or
she personally, nor anyone acting on his or her responsibility caused o r contributed to the loss or
damage through fault or neglect.

The carrier is not liable for any loss or damage resulting from measures to save life or from
reasonable measures to salve a vessel or other property at sea.

Where fault or neglect on the part of the carrier combines with another cause to produce loss or
damage, the carrier is liable only to the extent that the loss or damage is attributable to such fault
or neglect. The carrier shall prove the extent to which the loss or damage did not result from any
fault or neglect on his or her part.

Section 26

Liability for damage caused by error in navigation and fire

The carrier is not liable if he or she proves that the damage was caused by:

1) fault or neglect in the navigation or management of the ship committed by the master, any
crew member, a pilot or any other person performing work for the ship; or
2) fire not attributable to his or her personal fault or neglect.

Notwithstanding, the carrier is liable for any loss or damage resulting from failure o n his or her
part or on the part of any other person acting on his responsibility to exercise due diligence to
ensure that the ship was seaworthy prior to the start of the voyage. In order to be exonerated
from liability, the carrier shall prove that such diligence was exercised.

Section 27

Liability for live animals

The carrier is not liable for loss of or damage to live animals resulting from any special risks
inherent in that kind of carriage.

If the carrier proves that he or she has complied with any special instructions given and that the
loss or damage can be attributed to risks referred to in subsection 1, he or she is not liable, unless
such loss or damage resulted, in full or in part, from fault or neglect on his or her part or on the
part of anyone acting on his or her responsibility.

Section 28

Liability for loss or damage caused by delay

The carrier is liable for loss or damage caused by delay in delivery of goods in accordance with
sections 25–27.

Delay in delivery of goods occurs when the goods have not been delivered at the port of discharge
provided for in the contract of carriage within the time agreed or, in the absence of such
agreement, within the time which it would be reasonable to require of a diligent carrier, having
regard to the circumstances of the case.

If the goods have not been delivered as required within 60 days following the day on which they
should have been delivered according to subsection 2, a claim for compensation may be brought in
the same manner as for loss of goods under section 25.
Section 29

Calculation of compensation for loss of or damage to goods

The compensation payable for loss of or damage to the goods is calculated by reference to the
value of goods of the same kind at the place and time where the goods were or should have been
delivered in accordance with the contract.

The value of the goods is fixed according to the exchange price or, if there is no such price,
according to their market price. If there is no exchange price nor market price, the price is
determined by reference to the normal value of the goods of the same kind and quality.

Section 30

Limits of liability

The carrier’s liability is limited to 667 Special Drawing Rights (SDRs) per package or other shipping
unit, or to SDR 2.5 per kilogramme of gross weight of the goods in question, whichever is the
higher. ‘Special Drawing Right’ is determined in section 2 of chapter 23.

Section 31

Limitation of liability for unitised cargo

Where a container, pallet or similar article of transport is used to consolidate goods, each package
or other shipping unit enumerated in the transport document as packed in such article of transport
is deemed, in the application of section 30, one package or shipping unit. Otherwise, the goods in
such article of transport are deemed one unit. Where the article of transport itself has been lost or
damaged, that article of transport, if not owned or otherwise supplied by the carrier, is considered
one separate shipping unit.

Section 32

Liability not based on a contract of carriage

The provisions of this chapter on the carrier’s exoneration from and limitation of liability apply
even if an action raised against him or her were not based on a contract of carriage.
The provisions of this chapter on the carrier’s exoneration from and limitation of liability apply
correspondingly if an action is raised against a person on the carrier’s responsibility and that
person proves that he or she acted within the scope of his or her employment or on behalf of
another.

The aggregate liability determined for the carrier and those acting on his or her responsibility shall
not exceed the limits of liability under section 30.

Section 33

Forfeiture of the right to limitation of liability

No person is entitled to limitation of liability if it is proven that he or she has personally caused the
loss or damage intentionally or through gross negligence, knowing that such loss or damage was
likely to occur.

Section 34

Liability for deck cargo

If the goods are carried on deck contrary to the provisions of section 13, the carrier is,
notwithstanding the provisions of sections 25–28, liable for any loss or damage resulting solely
from the carriage on deck. The provisions of sections 30 and 31 apply to the extent of liability.

If the goods have been carried on deck contrary to express agreement for carriage under deck,
the right to limit liability in accordance with this chapter does not exist.

Section 35

Carrier’s liability for an actual carrier

Where the carriage or part thereof is performed by an actual carrier, the carrier’s liability under
this chapter remains as if he or she had personally performed the entire carriage.

If it has been expressly agreed that a certain part of the carriage is to be performed by a named
actual carrier, the carrier may exonerate himself or herself from liability for any loss or damage
caused by an occurrence that took place while the goods were in the charge of the actual carrier.
The carrier shall prove that the loss or damage was caused by such an occurrence.
Any clause referred to in subsection 2 above is, however, null and void, unless an action can be
brought with the court referred to in section 60.

Section 36

Actual carrier’s liability

The actual carrier is liable for the carriage performed by him or her under the same rules as the
carrier. The provisions of sections 32 and 33 apply correspondingly to the actual carrier.

Where the carrier has assumed broader liability than provided in this chapter or has waived rights
conferred by this chapter, the actual carrier is bound thereby only if he or she has given written
consent.

Section 37

Joint and several liability

Where both the carrier and the actual carrier are liable, their liability is joint and several.

The aggregate liability determined for the carrier and actual carrier and those acting on their
responsibility shall not exceed the limits of liability under section 30, subject to section 33.

Nothing in this chapter prevents the carrier and the actual carrier from agreeing on the right of
recourse.

Section 38

Complaints

Unless the consignee, at the time of delivery of the goods, has given written notice of loss of or
damage to the goods that he or she had or ought to have detected, specifying the general nature
of such loss or damage, the goods are deemed delivered as described in the document of
transport, unless otherwise shown. If the loss or damage could not be detected at the time of
delivery, the same applies, unless notice is given within three days after the day when the goods
were handed over.

No notice in writing need be given of loss or damage ascertained during a joint survey or
inspection of the goods.
The carrier is not liable for any loss or damage resulting from delay in delivery of goods unless a
notice has been given in writing to the carrier within 60 days after the day when the goods were
handed over to the consignee.

Such notice may be given to the actual carrier who delivered the goods, or to the carrier.

Section 39

Contribution in general average

The provisions of sections 24–38 on the carrier’s liability for loss of or damage to goods also apply
to the consignee’s right to refuse contribution in general average and the carrier’s obligation to
indemnify the consignee in respect of such contribution made or any salvage paid by the
consignee.

Shipper’s liability for damages

Section 40

General provision on liability for damages

The shipper is not liable for loss sustained by the carrier or the actual carrier, including damage
sustained by the ship, unless such loss or damage was caused by fault or neglect on his or her
part or on the part of anyone acting on his or her responsibility. Nor is anyone acting on the
shipper’s responsibility liable for such loss or damage unless caused by fault or neglect on his or
her part or on the part of anyone acting on his or her responsibility.

Section 41

Dangerous goods

If the shipper hands over dangerous goods to the carrier or an actual carrier without giving notice
of the dangerous character of the goods and of the necessary precautions to be taken in
accordance with section 7, and if the person receiving the goods does not otherwise have
knowledge of their dangerous character, the shipper is liable to the carrier and any actual carrier
for the costs and any other loss resulting from the shipment of suc h goods. In such cases, the
carrier or actual carrier may unload, destroy or render such goods harmless, as the circumstances
may require, without liability for damages.

Notwithstanding, no person who has taken the goods in his or her charge with knowledge of their
dangerous character may invoke the provisions of subsection 1.

Any goods which become an actual danger to persons or property may be unloaded, destroyed or
rendered harmless, as the circumstances may require, by the carrier or actual carrier without
liability for damages.

Bills of lading and other transport documents

Section 42

Bills of lading

Bill of lading means a document which:

1) evidences a contract of carriage by sea and the taking over or loading of the goods by the
carrier; and

2) is named ‘bill of lading’ or contains an obligation by which the carrier undertakes to deliver the
goods only against surrender of the document.

A bill of lading may be drawn to a named person, or to a named person or to order, or to bearer.
A bill of lading drawn to a named person is considered an order bill of lading, unless it includes a
reservation against transfer in terms of ‘non-negotiable’ or similar.

A bill of lading lays out the terms of carriage and delivery of goods between the carrier and any
bearer of the bill of lading other than the shipper. No terms of the contract of carriage not
included in the bill of lading shall be invoked against such bearer, unless the bill of lading includes
a reference thereto.

Section 43

Through bills of lading

‘Through bill of lading’ means a bill of lading indicating that the carriage of goods is performed by
more than one carrier.
Any person issuing a through bill of lading shall ensure that each particular bill of lading issued for
a certain part of the carriage indicates that the carriage of goods is based on a through bill of
lading.

Section 44

Consignor’s right to receive a bill of lading

When the carrier has taken the goods in his or her charge, he or she shall, on demand of the
consignor, issue a received-for-shipment bill of lading.

After the goods have been loaded on board, a shipped bill of lading shall be issued on the
consignor’s demand. If any received-for-shipment bill of lading has been issued, it shall be
surrendered in exchange for a shipped bill of lading. Such a received-for-shipment bill of lading is
good for a shipped bill of lading once such document states the named ship or ships on board of
which the goods are loaded and the date of loading.

The consignor is entitled to receive separate bills of lading for parts of a consignment where this is
possible without causing material harm.

Section 45

Bills of lading signed by the ship’s master

A bill of lading signed by the master of the ship carrying the goods is deemed to have been signed
on behalf of the carrier.

Section 46

Contents of bills of lading

The bill of lading shall include the following particulars:

1) the nature of the goods as furnished by the consignor, including details as to the dangerous
character of the goods, the marks necessary for identification of the goods, the number of
packages or pieces, and the weight of the goods or their quantity otherwise expressed;

2) the apparent condition of the goods and packaging;

3) the name and principal place of business of the carrier;

4) the name of the consignor;

5) the consignee if named by the consignor;

6) the port of loading under the contract of carriage and the date on which the goods were
taken over by the carrier at that port;

7) the port of discharge under the contract of carriage and any possible agreement on the date
of delivery of the goods at that port;

8) the number of originals of the bill of lading, if more than one was issued;

9) the place of issuance of the bill of lading;

10) the amount of freight to the extent payable by the consignee or other indication that freight is
payable by the consignee, as well as any other terms of carriage and delivery of the goods;

11) a statement that the carriage is subject to the provisions of the Convention in accordance with
subsection 3 of section 4;

12) a statement that the goods shall or may be carried on deck in the specific case; and

13) any increased limit of liability that may have been agreed by the parties.

Furthermore, the shipped bill of lading shall state the name and nationality o f the ship, the place
of loading and the completion date of loading.

The bill of lading may be signed by the carrier or anyone acting on his or her behalf. The signature
may be made by any mechanical or electronic means.

Section 47

Absence of particulars in a bill of lading

Any document that meets the requirements of subsection 1 of section 42 is considered a bill of
lading even in the absence of any particulars mentioned in section 46.
Section 48

Carrier’s duty to inspect

The carrier shall make reasonable efforts to check that the particulars to be noted on a bill of
lading under paragraph 1 of subsection 1 of section 46 are correct. If the carrier has reasonable
grounds to suspect the accuracy of the particulars or if he or she had no reasonable means of
checking the accuracy thereof, he or she shall insert in the bill of lading a reservation to this effect.

Section 49

Evidentiary effect of a bill of lading

A bill of lading is evidence that the goods were taken over or, where a shipped bill of lading is
issued, loaded as described in the bill of lading, in the absence of evidence to the contrary or
unless any reservation in accordance with section 48 has been entered. If the bill of lading
contains no note of the apparent condition of the goods, it is deemed to indicate that the goods
were in apparent good condition, in the absence of evidence to the contrary.

A bill of lading which does not set forth the freight or otherwise indicate that freight is payable by
the consignee under paragraph 10 of subsection 1 of section 46, is evidence that no freight is
payable by the consignee, unless otherwise shown. The provision applies correspondingly where
no amount payable as demurrage is set forth in the bill of lading.

If a third party has taken up a bill of lading in good faith in reliance on the accuracy of the
particulars thereon, no evidence to the contrary under subsections 1 and 2 is admissible. If the
carrier realised or ought to have realised that the particulars provided of the goods were
inaccurate, he or she may not invoke any reservation referred to in section 48, unless the
reservation contains a specific note of such inaccuracies.

Section 50

Liability for misleading particulars on a bill of lading

Should a third party incur loss as a result of taking up a bill of lading in reliance on the accuracy of
the particulars thereon, the carrier is liable if he or she realised or ought to have realised that the
contents of the bill of lading could mislead the third party. No right to limitation of liability under
this chapter exists in such cases.
If the goods do not correspond with the particulars on a bill of lading, the carrier is, on demand of
the consignee, obliged to inform the consignee of whether the consignor has undertaken to ensure
that the carrier will not incur any loss resulting from inaccurate or incomplete particulars (letter of
guarantee), as well as of the contents of such a letter of guarantee.

Section 51

Consignor’s guarantees

The consignor is liable to the carrier for the accuracy of the particulars concerning the goods
inserted into the bill of lading on his or her request.

Notwithstanding, if the consignor has undertaken to indemnify the carrier against loss resulting
from the issuance of a bill of lading furnished with inaccuracies or without any reservation, he or
she is not liable if this was done with the intention to mislead the recipient of the bill of lading. In
such cases, the consignor is also not liable under subsection 1.

Section 52

Right to take over goods

Anyone who presents a bill of lading and is its rightful holder according to its contents or, if it is an
order bill of lading, an uninterrupted series of endorsements extending to him or her or an
endorsement is entitled to receive the goods.

Where more than one original of the bill of lading was issued, it is sufficient for the delivery of the
goods at the destination that the consignee proves his or her right by presenting one or iginal of
the bill of lading. If the goods are delivered in another place, any other originals shall also be
surrendered, or security shall be provided for any claims that a holder of an original in circulation
may assert against the carrier.
Section 53

Several holders of a bill of lading

If several consignees come forward presenting separate originals of a bill of lading, the carrier
shall place the goods in safekeeping on behalf of the rightful consignee. A notice of such measure
shall be issued as soon as possible to those who came forward.

Section 54

Delivery against a bill of lading

The consignee is only entitled to take the goods in his or her charge if he or she deposits the bill of
lading and issues a receipt as and when the goods are delivered.

After all the goods have been delivered, the bill of lading, duly receipted, shall be surrendered to
the carrier.

Section 55

Delivery in the event of a lost bill of lading

If an application to cancel a lost bill of lading has been submitted, the applicant may, after the
court has decided on issue of a public notice, demand delivery of the goods, provided that he or
she gives security for any compensation that the carrier may have to pay due to the lost bill of
lading.

Section 56

Acquisition of a bill of lading in good faith

If the rightful holder of a bill of lading under section 52 surrenders more than one original of an
order or bearer bill of lading to different persons, the one who first received his or her original in
good faith has the right to the goods. Should the goods have been released to the holder of
another original at the destination, that person does not have to hand back anything of which he
or she has already taken charge in good faith.

No person who has got hold of an order or bearer bill of lading in good faith is obliged to
surrender the bill of lading to the person who misplaced it.
Section 57

Right of stoppage in transit

The seller’s right to prevent delivery of the sold goods to the buyer or require returning them due
to the buyer’s insolvency or failure to fulfil his or her contractual obligation, applies even if the bill
of lading for the goods were surrendered to the buyer.

The right mentioned in subsection 1 above shall not be invoked against a third party who has
acquired an order or bearer bill of lading in good faith.

Section 58

Sea waybills

Sea waybill means a document which:

1) evidences a contract of carriage by sea and the taking over of the goods by the carrier; and

2) contains an obligation by which the carrier undertakes to deliver the goods to the consignee
named in the document.

The shipper may, even after the issue of the sea waybill, determine that the goods are t o be
delivered to a consignee other than the one named in the document, unless he or she has
surrendered this right in respect to the carrier, or unless the consignee has already exercised his
or her right.

A bill of lading may be demanded in accordance with section 44, unless the shipper has waived his
or her right to determine another consignee.

Section 59

Contents and evidentiary effect of a sea waybill

A sea waybill shall include the particulars of the goods handed over for carriage; the shipper, the
consignee and the carrier; the terms of carriage; as well as freight and other costs payable by the
consignee. The provisions of subsection 3 of section 46 and section 48 apply correspondingly to
sea waybills.
In the absence of evidence to the contrary, a sea waybill evidences a contract of carriage by sea
and the taking over of the goods as described in the document.

Dispute resolution

Section 60

Contractual jurisdiction clauses

Any agreement which was concluded prior to a dispute arising and which limits the plaintiff’s right
to judicial review of a dispute arising from carriage of general cargo under this chapter is null and
void to the extent that it limits the plaintiff’s right to, at his or her option, institute an action in a
court which is situated in:

1) the principal place of business or, in the absence thereof, the habitual residence of the
defendant;

2) the place where the contract of carriage was made provided that the defendant has there a
place of business, branch or agency through which the c ontract was made; or

3) the place where the agreed port of loading or the agreed or actual port of discharge is
located.

Notwithstanding the provisions of subsection 1, any interested party may institute an action in a
court having jurisdiction in a place mentioned in the contract of carriage. In the event of a dispute,
the parties are free to agree on how the dispute is to be addressed.

Where a bill of lading was issued pursuant to a charter party containing a provision on the
competent court or arbitration proceedings, and the bill of lading does not contain a specific
stipulation providing that such provisions are also binding on the holder of the bill of lading, the
carrier shall not invoke such provisions against any person having acquired the bill of lading in
good faith.

The provisions of subsection 1 do not apply if neither the agreed port of loading nor the agreed
port of discharge is located in Finland, Norway, Sweden or Denmark. (396/1999)
Section 61

Arbitration clauses

The parties may, notwithstanding the provisions of subsection 1 of section 60, agree in writing
that disputes may be referred to arbitrators. In such cases, language providing that the arbitration
proceedings shall, at the option of the claimant, be instituted in a state in which a place referred to
in subsection 1 of section 60 is situated, and that the arbitrators shall apply the provisions of this
chapter shall always be included as part of any arbitration agreement.

Regardless of the provisions of the arbitration agreement, howev er, the provisions of subsections 2
and 3 of section 60 apply correspondingly.

The provisions of subsection 1 do not apply if neither the agreed port of loading nor the agreed or
actual port of discharge is located in Finland, Norway, Sweden or Denmark.

Chapter 14

Ship chartering

General provisions

Section 1

Scope of application and definitions

The provisions governing charter parties apply to full and partial chartering of ships. The
provisions governing voyage charter parties also apply to consecutive v oyages, unless otherwise
provided by law.

For the purposes of this chapter:

1) carrier means any person who, under a contract, charters out a ship to another, the
charterer;

2) consignor means any person who consigns goods for loading;

3) voyage chartering means chartering where freight is determined per voyage;

4) consecutive voyages means a certain number of voyages performed one after another under
a charter party for a specific ship;
5) time chartering means chartering where hire is determined per unit of time; and

6) partial chartering means chartering under a charter party which only concerns a certain part
of a whole ship or full cargo.

The provisions of this chapter apply to contracts for chartering of ships in Finland’s domestic trade
and between Finland, Norway, Sweden and Denmark. Any contracts for chartering in domestic
trade within Norway, Sweden and Denmark are subject to the national law of the state in which
the carriage is performed.

The provisions of this chapter apply to chartering in trade not referred to in chapter 3 where
Finnish law is applicable.

Section 2

Freedom of contract

The provisions of this chapter do not apply if otherwise provided in an agreement, practice
established by the contracting parties or usage or other custom of the trade to be considered
binding on the parties.

In respect of voyage chartering in Finland’s domestic trade and in trade between Finland, Norway,
Sweden and Denmark, the provisions of section 27 shall not be derogated from by agreement to
the detriment of the consignor, voyage charterer or consignee. The same applies to the provisions
of paragraph 4 of subsection 1 of section 1 and section 2 of chapter 19. Notwithstanding,
provisions regarding general average may be included in charter parties. Any limitations on
freedom of contract in domestic trade within Norway, Sweden and Denmark are subject to the
national law of the state in which the carriage is performed.

In respect of chartering in trade referred to in subsections 1 and 2 of section 2 of chapter 13, the
provisions of section 18 on the issue of bills of lading shall not be derogated from by agreement to
the detriment of the consignor.

Furthermore, none of the provisions of this chapter shall be derogated from by agreement where
this follows from the provisions of section 5.
Section 3

Chartering of a specific ship

If a charter party is for a specific ship, the carrier shall not use any other ship to fulfil the charter
party. If the charter party entitles the carrier to use a ship other than the one agreed on or to
otherwise use other ships, the carrier may exclusively use ships which are as suitable for the
purpose as the ship under the charter party. Such right may be exercised more than once.

If the charter party covers the whole ship or full cargo, the carrier shall not take goods on board
on behalf of any person other than the charterer. This shall be observed even when the ship is
sailing in ballast to commence a new voyage.

Section 4

Transfer of a charter party

If a charterer transfers the rights under the charter party to another or sub-charters the ship, he
or she will, however, remain responsible for fulfilling the charter party.

The carrier shall not transfer the charter party to another without the charterer’s consent. If the
charterer has consented to such transfer, the carrier will cease to be liable under the charter party.

Section 5

Tramp bills of lading

If the carrier issues a bill of lading for the goods to be carried on the ship, the bill of lading lays
out the terms of carriage and delivery of goods between the carrier and any third party bearing
the bill of lading. No provisions of the charter party not included in the bill of lading shall be
invoked against such third party, unless the bill of lading includes a reference thereto.

The provisions of sections 45–57 of chapter 13 also apply to any bills of lading referred to in
subsection 1. Where it follows from section 3 of chapter 13 that the provisions on the carriage of
general cargo are applicable to a bill of lading, the carrier’s liability and rights in respect of a third
party are determined in accordance with sections 4 and 24–40 of chapter 13.
Voyage chartering

Preliminary provisions on voyage chartering

Section 6

Freight

If no freight is determined under the charter party, the freight payable shall be the rate current at
the time of conclusion thereof.

Where goods other than or in excess of what was agreed have been loaded on board, the freight
payable shall be the rate current at the time of loading, provided that it is not less than the agreed
freight.

Section 7

Seaworthiness

The carrier shall ensure that the ship is seaworthy, which also entails ensuring that the ship is
properly manned and equipped, and that the holds, refrigerating and cool chambers and all other
parts of the ship in which goods are carried are in good condition to receive, carry and preserve
the goods.

Section 8

Voyage charterer’s choice of loading and discharge ports

If the charter party entitles the voyage charterer to choose the port of loading or d ischarge, the
ship shall go to the port nominated by the charterer, provided that it is accessible and allows the
ship to lie freely and safely afloat and enter or depart without hindrance with cargo on board. The
choice of discharge port shall be made no later than upon completion of loading.

If the voyage charterer has ordered the ship to an unsafe port, he or she is liable for any damage
thereby sustained by the ship, unless he or she proves that such damage was not caused by fault
or neglect on his or her part nor on the part of anyone acting on his or her responsibility.

In respect of consecutive voyages, the right to choose the voyages which the ship is to perform
shall be exercised such that the aggregate length of both laden voyages and ballast voyages under
the charter party remains essentially the same. Otherwise, the voyage charterer is liable to pay
compensation for loss of freight.

The voyage charterer shall not change his or her choice of port or voyage.

Section 9

Place of loading

If no specific place of loading has been agreed, the ship shall be berthed at the loading place
nominated by the voyage charterer, provided that it is accessible and allows the ship to lie freely
and safely afloat and depart without hindrance with cargo on board.

If no place of loading is nominated in time, the ship shall be berthed at any customary loading
place. If this is not possible, the carrier shall choose a berth where loading can reasonably take
place.

The voyage charterer is, whether or not a specific place of loading was agreed, entitled to have
the ship shifted from one loading place to another, if he or she covers the costs involved.

Loading time

Section 10

Loading time

The carrier is obliged to let the ship lie for loading for a specific loading time, which comprises
laytime and any time on demurrage. Where chartering is performed on liner terms, the loading
time does not include any time on demurrage.

Section 11

Duration of laytime

Laytime is the time which, at the time of conclusion of the charter party, loading can reasonably
be expected to take. Laytime shall be calculated taking account of the nature and size of the ship
and cargo, the loading gear on board and in the port as well as other similar circumstances.

Laytime is calculated:
1) under the FAC clause (fast as can) such that loading shall be performed as fast as the ship
can receive the cargo without damaging the loading gear;

2) under the FACCOP clause (fast as can custom of the port ) such that loading shall be
performed as fast as the customary way of loading in the port permits; and

3) under the liner terms clause such that loading shall be performed as fast as customary for
loading in the port in liner shipping, plus any time lost due to congestion.

If an overall time has been specified for loading and discharge, laytime will only end when such
overall time has expired.

Laytime is calculated in terms of working days and working hours. Every weekday on wh ich the
number of hours worked is customary for weekdays in a specific port is counted as a working day.
Every hour which can be used for loading on weekdays is counted as a working hour. For days on
which the number of hours worked is lower than on weekdays, the number of hours commonly
used for loading is counted.

Section 12

Commencement of laytime

Laytime does not begin to run until the ship is at its loading place, ready to receive cargo, and the
carrier has given notice thereof.

Notice may be given in advance, but not before the ship has entered the loading port. Should it
subsequently appear that the ship was not ready for loading, the time lost to make the ship ready
does not count as laytime.

The notice shall be given to the consignor or, if he or she cannot be reached, to the voyage
charterer. Where neither the consignor nor the voyage charterer can be reached, the notice is
deemed to have been given when sent as appropriate.

The time is either calculated from the hour when work normally begins at the port in the morning,
or from the end of the lunch break. The notice shall be made on the previous day no less than one
hour prior to the end of office hours in the former case and no later than at ten o’clock in the
morning on the same day in the latter.
Section 13

Hindrances

If the ship cannot be berthed at the loading place owing to a hindrance on the part of the voyage
charterer, the notice of readiness for loading may still be given with the effect that the laytime
starts to run. The same applies to congestion as well as any other hindrance that the carrier could
not have reasonably taken into account at the time of concluding the charter party.

No time lost owing to a hindrance on the part of the carrier is counted as laytime. The same
applies to any time lost as a result of berthing the ship at a loading place other than the customary
one for a reason that the carrier must have reasonably taken into account at the time of
concluding the charter party. Conversely, any delay due to shifting the ship is counted towards
laytime.

Section 14

Time on demurrage

Time on demurrage is the time after the expiry of laytime that the ship has to remain at the port in
order to be loaded, unless the length of time on demurrage is specified by agreement.

Time on demurrage is calculated in terms of running days and hours from the expiry of laytime.
The provisions of subsection 2 of section 13 apply correspondingly to any time on demurrage.

Section 15

Demurrage charges

The carrier is entitled to a separate compensation for any time on demurrage. The amount of
demurrage is determined with regard to the freight and the increase or reduction of costs incurred
by the carrier due to the ship’s idle time.

Payment is due on demand.

In the event of failure to pay demurrage or provide security to cover it, the carrier may make a
note of the claim on the bill of lading. Failing this, he or she may set a specific additional period of
time for the voyage charterer to make the payment. If the period is not unreasonably short and
the claim is not paid within the additional period, the carrier may cancel the charter party and
demand compensation for loss due to non-performance of the voyage.

Loading

Section 16

Loading and stowage

Subject to any custom of the port, the voyage charterer shall deliver the goods for loading
alongside the ship and the carrier shall take it on board.

Under the clause:

1) FIO (free in and out ), the voyage charterer shall arrange for the loading; and

2) liner terms, the carrier shall arrange for the loading.

The carrier shall arrange for the ceiling and anything else necessary for stowage and carry out the
stowage.

The provisions of section 13 of chapter 13 apply correspondingly to deck cargo.

If the ship is berthed at a loading place other than the customary one for a reason that the carrier
must have reasonably taken into account at the time of concluding the charter party, the carrier is
liable for any additional costs in consequence thereof.

Section 17

Delivery of goods

The goods shall be delivered and loaded with due dispatch. They shall be handed over in such a
manner and condition that they can be conveniently and safely loaded on board the ship, stowed,
transported and unloaded.

The provisions of sections 6–9 of chapter 13 apply correspondingly to the delivery and loading of
goods in voyage chartering.
Section 18

Shipped bills of lading

After the goods have been loaded, the carrier or master, or any other person otherwise authorised
by the carrier for this function, shall issue a shipped bill of lading on the consignor’s demand,
provided that the necessary documents and particulars are available.

The consignor is entitled to receive separate bills of lading for parts of a consignment where this is
possible without causing material harm.

If a bill of lading is issued under the charter party and contains terms in contravention thereof,
thereby extending the carrier’s liability, the voyage charterer shall be liable for any loss that this
may cause to the carrier.

Voyages

Section 19

Carrier’s duty of care

Voyages shall be performed with due dispatch and in an otherwise acceptable manner. The
provisions of subsections 1 and 3 of section 12 and section 16 of chapter 13 on the carrier’s
obligation and right to act on behalf of the cargo owner and those o f section 17 on the cargo
owner’s liability for the measures taken apply correspondingly to voyage chartering.

Section 20

Deviations from route and substitute ports

Any deviation is only allowed for the purpose of saving human life, a vessel or goods, or on other
reasonable grounds.

In the event of an obstacle preventing the ship from reaching the port of discharge to unload the
cargo, or if this cannot be done without unreasonable delay, the carrier may instead choose
another suitable port of discharge.
Section 21

Distance freight

Where a part of the voyage has been performed when the charter party is cancelled or expires, or
where the goods are unloaded in a port other than the agreed port of discharge for any other
reason, the carrier is entitled to distance freight. The provisions of section 24 apply
correspondingly to distance freight.

Distance freight is the agreed freight minus an amount calculated according to the ratio of the
lengths of the remaining and agreed voyages. In such cases, the duration of such voyages and the
specific costs involved shall also be taken into account. Distance freight shall not amount to more
than the value of the goods.

Any disputes over distance freight may be referred for review and resolution by an Average
Adjuster. In such cases, the provisions governing general average on the adjustment of loss or
damage shall be observed as appropriate.

Section 22

Dangerous goods

In the event that dangerous goods have been loaded on board without the carrier’s knowledge of
their dangerous character, the carrier may unload, destroy or render such goods harmless, as the
circumstances may require, without liability for damages. The same applies even if the carrier was
aware of the dangerous character of the goods, if any danger to perso ns or property subsequently
arises that makes it untenable to keep the goods on board.

Discharge and delivery of goods

Section 23

Discharge

The provisions of sections 9–17 apply correspondingly to the discharge place, discharge time and
discharge of the goods. In this context, the provisions laid down herein on voyage charterers apply
to the consignee.

The person entitled to receive the goods has the right to inspect them before receipt.
If the goods carried under the same charter party have several consignees, they may only jointly
nominate the place of discharge or demand that the ship be shifted.

The voyage charterer shall cover the additional costs of any damage to or disposal of the goods as
a result of an incident, if such loss or damage arose from the nature of the goods or from fault or
neglect on the part of the voyage charterer. Where the FIO clause (free in and out ) is used, the
voyage charterer shall cover the costs, unless the carrier is liable for loss or damage under section
27.

Section 24

Freight for goods unaccounted for

The freight for any goods unaccounted for upon completion of the voyage shall only be payable if
the goods were lost as a result of their specific nature, deficient packaging or fault or neglect on
the part of the voyage charterer, or if the carrier has sold the goods on behalf of the owner or
unloaded, rendered harmless or destroyed them in accordance with section 22.

Any prepaid freight shall be refunded, unless the carrier is entitled to the freight under subsection
1.

Section 25

Liability of the consignee and voyage charterer for freight

The consignee is obliged upon receipt of the goods to pay freight and any other claims in
accordance with the provisions of section 19 of chapter 13.

The carrier may, in any event, demand payment from the voyage charterer in accordance with the
provisions of section 23 of chapter 13.

The carrier is entitled to retain the goods in accordance with the provisions of section 20 of
chapter 13.
Section 26

Storage of goods

If the consignee fails to satisfy the conditions for taking charge of the goods or delays the
discharge of the ship to the extent that it cannot be completed within the agreed or otherwise
reasonable period of time, the carrier may unload the goods and place them in safekeeping on
behalf of the consignee. The consignee shall be given notice of such storage.

If the consignee refuses to accept the goods, or if the consignee is not known or found, the carrier
shall inform the voyage charterer thereof as soon as possible. If the consignee fails to come
forward in sufficient time to allow the goods to be discharged in time, the carrier shall unload the
goods and place them in safekeeping. The consignee and the voyage charterer shall be given
notice of such storage.

Any notice under subsections 1 and 2 above shall specify a reasonable period of time after which
the carrier is entitled to sell or otherwise dispose of the stored goods. The provisions of section 22
of chapter 13 apply correspondingly to the sale or other disposal of goods.

Section 27

Cargo loss and damage and delayed delivery

The carrier is liable for the loss of, damage to or delay in delivery of any goods in his or her charge
in accordance with sections 24–35 and 37–39 of chapter 13. The provisions of section 36 of
chapter 13 on the actual carrier’s liability apply correspondingly.

A consignee other than the voyage charterer is also entitled to compensation under subsection 1.
If the consignee holds a bill of lading issued by the carrier, he or she may also invoke the
provisions of section 5.

Breach of contract and hindrances on the carrier’s part

Section 28

Cancellation time

Where the ship needs to be ready to take on cargo within a prescribed period of time ( cancellation
time), the voyage charterer may cancel the charter party if the ship is not ready to take on cargo
or a notice of readiness has not been given by the end of the prescribed period.

If the carrier gives notice that the ship will arrive after the prescribed period and states the time at
which the ship will be ready to take on cargo, the voyage charterer is entitled to cancel the charter
party, provided that this is done within a reasonable period of time. If the charter party is not
cancelled, the stated time will become the new discharge time.

Section 29

Delay and other breaches of contract

The voyage charterer may cancel the charter party due to a delay or some other breach of
contract on the part of the carrier if such breach is material.

The voyage charterer shall not cancel the charter party after the goods have been loaded where
unloading the goods would cause material loss or inconvenienc e to another charterer. In respect
of consecutive voyages, the voyage charterer shall not cancel the charter party for an individual
voyage, unless performance of that voyage is immaterial to the carrier in relation to remaining
voyages.

Should the voyage charterer wish to cancel the charter party, he or she shall give notice thereof
within a reasonable time after he or she can be expected to have been informed of the breach of
contract. Failing this, he or she will forfeit the right to cancel.

Section 30

Destruction of a ship

Where the charter party is for a named ship and the ship is wrecked or condemned following and
incident, the carrier is not obliged to perform the voyage. In such cases, he or she is also not
entitled to perform the voyage with a ship which is not the one chartered, even if the charter party
permits him or her to replace the chartered ship with another one.
Section 31

Carrier’s liability for damages

Where a delay or some other breach of contract on the part of the carrier results in loss or
damage not covered by section 27, the provisions of sections 25 and 26 of chapter 13 on liability
for loss of or damage to goods and for damage caused by error in navigation and fire apply
correspondingly.

Breach of contract and hindrances on the v oyage charterer’s part

Section 32

Withdrawal prior to completion of loading

Where the voyage charterer withdraws from the charter party before loading commences, or
where he or she, after indicating this in some way, has not handed over all of the goods u nder the
charter party by the completion of loading, the carrier is entitled to compensation for loss of
freight and any other loss. In respect of consecutive voyages, withdrawal from an individual
voyage is only allowed where performance of that voyage is immaterial to the carrier in relation to
remaining voyages.

Compensation shall be determined with due consideration for whether the carrier has failed to take
on other goods without a reasonable cause.

No right to compensation exists if the handover, carriage or delivery of the goods to the
destination must be considered impossible due to circumstances which the voyage charterer would
not have been expected to take into account at the time of concluding the charter party, such as
export or import bans or other measures adopted by public authorities, accidental destruction of all
goods of the kind covered by the charter party, or comparable circumstances. The same applies
where the charter party concerns specific goods which are accidentally destroyed.

Should the voyage charterer wish to invoke circumstances mentioned in subsection 3, he or she
shall give reasonable notice thereof to the other party. Failing this, he or she is obliged to
compensate for any loss or damage that could have been avoided, if the notice had been given in
time.
Section 33

Right of cancellation

If the voyage charterer is allowed to withdraw from the charter party without liability for damages
under subsection 3 of section 32, the carrier is also entitled to withdraw from the charter party,
provided that he or she gives notice thereof within a reasonable period of time.

If the voyage charterer fails to hand over all of the goods under the charter party for loading, the
carrier may set a specific additional period of time for the carrier to pay compensation or provide
security. If the period is not unreasonably short and no compensation is paid nor security provided
for it within the additional period, the carrier may cancel the charter party. He or she is also
entitled to claim compensation under section 32.

Section 34

Withdrawal after loading

After the goods have been loaded, the voyage charterer is neither entitled to have the cargo
unloaded nor the voyage suspended, should this cause material loss or inconvenience to the
carrier or to another charterer. In such cases, the provisions of sections 32 and 33 on withdrawal
prior to completion of loading and the right of cancellation apply correspondingly.

Section 35

Delay in loading

If a time on demurrage has been agreed and the voyage charterer has failed to hand over all or
some of the goods by the end of the loading time, the provisions of sections 32 and 33 on
withdrawal prior to completion of loading and the right of cancellation apply correspondingly. The
same applies when the charter party contains a liner terms clause and the laytime has expired.

If no length of time on demurrage has been agreed, and if loading is delayed to such extent as to
result in material loss or inconvenience to the carrier, he or she may, even if demurrage were paid,
cancel the charter party or, where goods have already been handed over for loading, declare the
loading completed. In such cases, the provisions of sections 32 and 33 apply correspondingly.
Section 36

Other delays

If the ship is delayed after loading or during the voyage due to circumstances on the part of the
voyage charterer, the carrier is entitled to damages, unless the voyage charterer proves that
neither he or she personally nor anyone acting on his responsibility is guilty of fault or neg lect. The
same applies where the ship’s discharge is delayed because it is impossible for the carrier to store
the goods in accordance with section 26.

If the freight or demurrage for consecutive voyages or any other claims under the charter party
are not paid when due, the carrier may set a specific additional period of time for payment. If the
period is not unreasonably short and no claim is paid within the additional period, the carrier may
suspend the performance of or cancel the charter party. The carrier is entitled to compensation for
loss arising from such suspension of performance or, if the charter party is cancelled, of
cancellation of the remaining voyages.

Section 37

Loss or damage caused by goods

Where the goods have caused any loss to the carrier or damage to the ship, the voyage charterer
is liable to pay damages, if such loss or damage resulted from fault or neglect on his or her part or
on the part of anyone acting on his or her responsibility. The same applies to partial chartering if
the goods have caused damage to other goods on board.

Expiry of a charter party

Section 38

War risk

If it appears after the conclusion of a charter party that the voyage might entail damage to the
ship, persons on board or the cargo in consequence of war, blockade, insurrection, civil commotion
or piracy or some other type of armed violence, or that such a risk has materially increased, both
the carrier and the voyage charterer are entitled to withdraw from the charter party without
liability for damages, even if the voyage had commenced. The party wishing to withdraw shall give
the other party reasonable notice thereof. Failing this, he or she is obliged to compensate for any
loss or damage that could have been avoided, if the notice had been given in time.

If the risk can be averted by leaving behind or discharging some of the goods, withdrawal from
the charter party is only allowed in this respect. The carrier is nevertheless entitled to withdraw
from the entire charter party, provided that this does not cause any material loss or inconvenience
to another voyage charterer, if damages are not paid or security provided for loss of freight and
any other loss despite requests.

Section 39

Consecutive voyages

In respect of consecutive voyages, withdrawal from the charter party for an individual voyage in
accordance with section 38 is only allowed where performance of that voyage is immaterial in
relation to remaining voyages.

Where the charter party entitles the voyage charterer to choose the voyages which the ship is to
perform, withdrawal from the charter party is only allowed under section 38 if the risk is of
material significance for its fulfilment.

Section 40

Costs of delay

If the ship is delayed at the loading port or in another port on the voyage after loading has
commenced because of a risk referred to in section 38, the costs of the delay shall be regarded as
general average expenditure and apportioned between the ship, the freight and the cargo as
provided on general average. In the event of withdrawal from the charter party, however, this
does not apply to any subsequent costs.

Section 41

Expiry of the charter period for consecutive voyages

If the ship has been chartered for as many voyages as it can perform within a specific period, and
if, prior to the expiry of that period, the voyage charterer has received notice that the ship is ready
to take on cargo, the voyage shall be performed even if this took place wholly or partly after the
expiry of the charter period.

If it is evident that the ship cannot reach the port of loading and be ready to receive cargo prior to
the expiry of the charter period, the carrier is not obliged to send the ship to the port of loading.

If the carrier gives notice that the ship may arrive late at the loading port and requests
instructions, the voyage charterer may decide either that the voyage shall be performed under the
charter party, or that the charter party will expire. The charter party expires if the voyage
charterer fails to request the performance of the voyage within a reasonable period of time after
receiving the notice.

Contracts of affreightment

Section 42

Scope of application

The provisions on contracts of affreightment apply to the carriage of a specific quantity of goods
by sea in a series of shipments during an agreed period.

However, the provisions do not apply if it has been agreed that the shipments are to be made
consecutively on a specific ship.

Section 43

Choice of quantity

Where the contract allows the total quantity of goods to be chosen, the charterer is entitled to
decide the quantity.

Where the choice of quantity applies to the quantity of goods to be carried on a specific voyage,
the carrier is entitled to decide the quantity.
Section 44

Shipping schedules

The charterer shall prepare shipping schedules suitably spread over the period of time covered by
the contract of affreightment and inform the carrier of the schedules in good time.

The charterer shall ensure that the quantity of goods included in the contract is appropriately
divided over the contract period. In this context, he or she shall take the size of the ships being
used into account.

Section 45

Notice of shipment

The charterer shall give reasonable notice of shipment prior to loading. The notice shall indicate
the time by which the goods will be ready for loading at the latest.

Section 46

Nomination of a ship

After the notice of shipment has been submitted, the carrier shall provide a ship which is suitable
to perform the voyage in due time. The carrier shall give reasonable notice of the ship which will
perform the voyage, its cargo carrying capacity and the estimated time of arrival at the loading
port.

The carrier is not obliged to provide a ship for goods which are not ready for loading prior to the
expiry of the contract period, unless such overrun is caused by circumstances beyond the control
of the charterer and is not material.

Section 47

Performance of voyages

When the charterer has submitted a notice referred to in section 46, the provisions on voyage
chartering or carriage of general cargo apply to the carriage.
Where the carrier’s obligation to perform a certain voyage expires due to circumstances on the
part of the carrier, the charterer is entitled to demand carriage of the goods or a corresponding
quantity of new goods.

If the expiry of the voyage gives reason to expect that subsequent voyages will not be performed
without material delay, the charterer may cancel the contract for the remaining period.

Section 48

Late submission of notice of shipment and shipping schedules

If the charterer fails to submit the notice of shipment in time, the carrier may set a specific
additional period of time for submission thereof. If the period is not unreasonably short and no
notice of shipment is given within the additional period, the carrier may either nominate a ship on
the basis of the shipping schedule in effect under section 46 or cancel the contract for the voyage
in question.

If the delay gives reason to expect material delays in notices of subsequent shipments, the carrier
may cancel the contract for the remaining period.

The carrier is entitled to damages, unless the delay was due to circumstances referred to in
subsection 3 of section 32.

If the charterer fails to give the carrier timely notice of the shipping schedules, the carrier may set
a specific additional period of time. If the period is not unreasonably short and it is not honoured,
the carrier may cancel the contract for the remaining period. In such cases, the provisions of
subsection 3 apply correspondingly to the right to damages.

Section 49

Delayed nomination of the ship

If the carrier fails to give timely notice of the ship, the charterer may set a specific additional
period of time. If the period is not unreasonably short and no notice is given within the additional
period, the charterer may cancel the contract for the voyage affected by the additional period.

If the delay gives reason to also expect material delays in notices of ships for subsequent
shipments, the charterer may cancel the contract for the remaining period.
The charterer is entitled to damages, unless the delay was caused by an obstacle beyond the
carrier’s control, which the carrier cannot reasonably be expected to have foreseen at the time of
concluding the contract and the consequences of which he or she could not reasonably have
averted or overcome.

Section 50

Overdue payment of freight

If the freight, demurrage or any other claims under the contract are not paid when due, the carrier
may set a specific additional period of time for payment. If the period is not unreasonably short
and no claim is paid within the additional period, the carrier may suspend the performance of the
contract or, if such delay constitutes a material breach of contract, cancel the contract.

The carrier is entitled to compensation for loss arising from such suspension of performance or, if
the contract is cancelled, of non-performance of the remaining voyages.

Upon completion of every voyage under the contract, the carrier is entitled to retain the cargo as
security for the claims covered by the contract. In relation to a third party, this may only be done
if such a claim has been entered on the bill of lading.

Section 51

War risk

Should war break out or warlike conditions or a significant increase in the risk of war arise during
the contract period, and should this be of material significance for the fulfilment of the contract,
both the carrier and the charterer are entitled to withdraw from the contract without liability for
damages.

The party wishing to withdraw shall submit reasonable notice thereof to the other party. Failing
this, he or she is obliged to compensate for any loss or damage that could have been avoided,
should the notice have been given in time.
Time chartering

Delivery of a ship

Section 52

Condition and equipment of the ship

The carrier shall place the ship at the time charterer’s disposal at the agreed place and time.

The carrier shall, upon ship delivery, ensure that its condition, required documentation, manning,
provisions and other equipment satisfy the requirements of conventional charter trade in the
trading area stipulated in the charter party.

The ship shall also carry enough bunker fuel to enable it to reach the nearest convenient
bunkering port. The time charterer shall take over the bunker fuel and pay for it at the price
current at that port.

Section 53

Surveys

On delivery of the ship, both the carrier and the time charterer may request a normal survey of
the ship, its equipment and its fuel supply.

Each of the parties shall pay half the costs, including those due to time lost due to the survey.

Unless otherwise shown, the survey report is evidence of the condition of the ship and its
equipment and fuel supply.

Section 54

Delivery of a ship at sea

Where the parties have agreed that the ship is to be delivered at sea, the carrier shall notify the
time charterer of the delivery, stating the position of the ship and the time of the delivery.

The survey referred to in section 53 above is carried out at the ship’s first port of call after
delivery. If any deficiencies are found in the survey, hire is not payable for the time lost in
correcting such deficiencies. If the time charterer cancels the charter party in accordance with
section 56, the carrier is not entitled to hire as from the time of delivery.
Section 55

Cancellation time and delayed delivery of the ship

Where the ship needs to be ready to take on cargo within a prescribed period of t ime (cancellation
time) under the charter party, the time charterer may cancel the charter party if the ship is not
ready to take on cargo or if a notice of readiness has not been given by the end of the prescribed
period. If the ship is to otherwise be delivered within a specified time, the time charterer may
cancel the charter party if the period is exceeded.

If the carrier gives notice that the ship will arrive late while also stating the time at which the ship
will be ready to take on cargo or ready for delivery, the time charterer may cancel the charter
party, provided that this is done within a reasonable period of time. If the charter party is not
cancelled, the stated time will become the new discharge time.

If the ship is otherwise delivered too late, the time charterer may cancel the charter party where
the delay constitutes a material breach of contract.

Section 56

Defects in the ship

If the ship or its equipment has any defects upon delivery, the time charterer is entitled to claim a
reduction of hire or, if the breach of contract is material, to cancel the charter party. However, no
right to reduce the hire and cancel the charter party exists if the carrier repairs the defects without
such delay as would entitle the time charterer to cancel the c ontract according to section 55.

Section 57

Liability for damages

The time charterer is entitled to damages for loss arising from a delay or defect upon delivery.
Where the carrier proves that such delay or defect did not result from fault or neglect on h is or her
part nor on the part of anyone acting on his or her responsibility, no right to such damages exists.
The time charterer is also entitled to damages for loss resulting from the ship’s lack of
characteristics or equipment at the time of conclusion of the charter party which may be deemed
to have been guaranteed.
Performance of voyages

Section 58

Time charterer’s right of disposal

During the charter period, the carrier shall perform the voyages required by the time charterer in
accordance with the charter party. In this context, the provisions of subsection 2 of section 52 on
the ship’s condition and equipment apply correspondingly.

The carrier is not obliged to perform a voyage during which the ship, persons on board or the
cargo would be exposed to danger in consequence of war, warlike conditions, ice or any other
hazard, or which causes material inconvenience which he or she cannot reasonably be expected to
have foreseen at the time of concluding the charter party.

The carrier is not obliged to take on board any easily flammable, combustible, corrosive or
otherwise dangerous goods unless they are delivered in such a condition that they can be carried
and delivered in accordance with the requirements and recommendations of the authorities of the
country of the ship’s registry, the country of the ship operator’s principal place of business, and
the ports of call included in the voyage. Nor is the carrier obliged to carry live animals.

Section 59

Obligation to inform

The carrier shall inform the time charterer of any details concerning the ship and voyages that are
of importance to the time charterer. The time charterer shall inform the carrier of planned
voyages.

Section 60

Fuel

The time charterer shall ensure that the ship is supplied with fuel and water for its engines. He or
she is responsible for ensuring that the fuel supplied meets the agreed specifications.
Section 61

Loading and discharge

The time charterer shall arrange for the receipt, loading, stowage, trimming, securing, discharge
and delivery of the cargo. The cargo shall be stowed so as to ensure that the ship is stable and the
cargo is secure. The time charterer shall follow the carrier’s instructions for the distribution of the
cargo as required for the safety and stability of the ship.

The time charterer may require the ship’s master and crew to participate in the work as customary
in the trade in question. Overtime and any other special compensation for such work shall be
payable by the time charterer.

If the carrier is liable for any loss or damage resulting from the loading, stowage, trimming,
securing, discharge or delivery of the cargo, the time charterer shall nevertheless undertake to
ensure that the carrier will not suffer from such loss or damage unless it was due to the
participation of the master or crew or to other circumstances for which the carrier is responsible.

Section 62

Bills of lading in time chartering

The carrier shall issue on request a bill of lading for the goods loaded for the voyage to be
performed on terms customary in the trade in question. If the carrier’s liability to the holder of the
bill of lading thereby exceeds what is stipulated in the charter party, the time charterer shall
undertake to ensure that he or she will not suffer any loss or damage.

The carrier is not obliged to honour any request by the time charterer to deliver the goods to a
consignee who fails to prove his or her right to the goods, or otherwise in contravention of the bill
of lading, if doing so would be contrary to honour and co nscience. The carrier may in any event
demand security for any compensation that may arise from such delivery.

Section 63

Cargo loss and damage and delayed delivery

The carrier is liable to the time charterer for the loss of, damage to or delay in delivery of any
goods in his or her charge in accordance with sections 24–35 and 37–39 of chapter 13. The
provisions of section 36 of chapter 13 on the actual carrier’s liability apply correspondingly.
A consignee other than the time charterer is also entitled to compensation under subsection 1. If
the consignee holds a bill of lading issued by the carrier, he or she may also invoke the provisions
of section 5.

Section 64

Delay and other breaches of contract on the carrier’s part

If the ship is not kept seaworthy or otherwise in the agreed condition or if the voyages are
performed late, or if there are any other breaches of contract on the part of the carrier, the time
charterer may cancel the charter party if its purpose would be essentially frustrated. Should th e
time charterer wish to cancel the charter party, he or she shall give notice thereof within a
reasonable period of time after he or she can be expected to have been informed of the breach of
contract. Failing this, he or she will forfeit the right to cancel.

The time charterer is entitled to damages in the event that the ship is wrecked or condemned
following an incident, or that the ship is not regarded as being seaworthy or otherwise in the
agreed condition, if such loss or damage resulted from the fault or neglect on the carrier’s part or
on the part of anyone acting on his or her responsibility. The same applies to any loss or damage
resulting from fault or neglect as the master or crew participated in the work referred to in
subsection 2 of section 61, compliance with the time charterer’s instructions or any other breach of
contract.

Section 65

Damage to the ship

The carrier is entitled to compensation for damage to the ship resulting from fault or neglect on
the time charterer’s part or on the part of anyone acting on his or her responsibility.

If such damage arose because the time charterer ordered the ship to an unsafe port, he or she is
liable for damages, unless he or she proves the absence of fault or neglect.
Section 66

General average and salvage

The time charterer shall pay the general average contribution in respect of the hire. The same
applies to the contribution apportioned to the fuel and equipment on board belonging to the time
charterer. If compensation for expenses and losses incurred by the time charterer is ordered in
general average, such compensation shall be payable to himself or herself.

The carrier may rescue persons without the time charterer’s consent. He or she may also salve
vessels or any other property, unless this unreasonably affects the time charterer. The time
charterer is entitled to one third of the carrier’s share of the net salvage reward referred to in
subsection 2 of section 11 of chapter 16 and, correspondingly, of the special compensation
referred to in section 9 of chapter 16. (1363/2006)

Section 67

Voyage expenses

The time charterer shall bear any expenses arising from the performance of voyages not payable
by the carrier under the provisions of this chapter.

Redelivery of the ship

Section 68

Redelivery and surveys

The time charterer shall redeliver the ship to the carrier at the agreed place and time.

The provisions of subsection 3 of section 52, section 53, as well as subsection 1 and the first
sentence of subsection 2 of section 54 apply correspondingly to redelivery. The same applies to a
situation where the charter party was cancelled or otherwise expired prior to the end of the
charter period.
Section 69

Overrun of the charter period

The carrier is obliged to allow the ship to depart for a new voyage even if the agreed time for
redelivery were thereby exceeded. Notwithstanding, no such obligation exists if the overrun is
longer than what can be considered reasonable or if a specific time interval was agreed for
redelivery.

The time charterer shall pay the agreed time charter hire for any overrun permitted under
subsection 1. For any other overrun, he or she shall pay the current time charter hire, however,
not less than the agreed hire, as well as compensation for any loss incurred by the carrier as a
result of the delay.

Time charter hire

Section 70

Payment of time charter hire

Time charter hire is payable in advance for a period of 30 days at a time.

If the time charterer demands deduction out of any amount in dispute, he or she is nevertheless
obliged to pay the hire if the carrier provides security for the claim. However, the timer charterer
shall not demand security for an amount in excess of the hire paid.

Section 71

Overdue payment of time charter hire

If time charter hire is not paid when due, the time charterer shall pay interest for late payment
under the Interest Act no later than in connection with the next payment of hire.

If hire is not paid when due, the carrier shall give the time charterer notice thereof. When the
notice has been sent, the carrier is entitled to suspend performance of the charter party, as well as
to refuse to load the goods or to issue a bill of lading. If payment is not received within 72 hours
of dispatch of the notice, the carrier may cancel the charter party.

If the carrier has suspended the performance of or cancelled the charter party, he or she is
entitled to damages, unless the time charterer proves that the delay in payment resulted from a
legal provision, interruption in communications or other similar force majeure, which the charterer
cannot reasonably be expected to have foreseen at the time of concluding the charter party and
the consequences of which he or she could not reasonably have averted or overcome.

If the time charterer fails to pay hire which has fallen due, the carrier may demand the time
charterer to assign to him or her any hire receivable by the charterer from sub -chartering of the
ship.

Section 72

Off-hire

Hire is not payable for time lost to the time charterer due to salvage, maintenance of t he ship, or
the repair of any damage for which the time charterer bears no responsibility, or otherwise due to
circumstances on the part of the carrier.

The time charterer’s obligation to cover expenses arising from the operation of the ship is limited
correspondingly.

Expiry

Section 73

Destruction of a ship

Where the ship is wrecked or condemned following an incident, the charter party expires even if it
permits the carrier to replace the chartered ship with another one. The same applies to requisition
or similar interventions which are of material significance for the fulfilment of the charter party.

If the ship was destroyed and the time of the occurrence cannot be ascertained, time charter hire
shall be payable for 24 hours following the time when the ship was last heard from.

Section 74

War risk

If a ship is in a port or any other area where war breaks out, warlike conditions arise, or the risk of
such circumstances materially increases, the carrier may immediately relocate the ship from the
area to safety.
In addition to the time charter hire, the time charterer shall reimburse the carrier for any increase
in the ship’s war insurance premium and war risk bonuses payable to crew which arise from the
voyages that the time charterer demands the ship to perform.

Should war break out or warlike conditions or a significant increase in the risk of war arise during
the charter period, and should this be of material significance for the performance of the charter
party, both the carrier and the time charterer are entitled to withdraw from the contract without
liability for damages.

The party wishing to withdraw shall give the other party reasonable notice thereof. Failing this, he
or she is obliged to compensate for any loss or damage that could have been avoided , if the notice
had been given in time.

Chapter 15

Carriage of passengers and their luggage

Section 1 (249/2017)

Athens Regulation and domestic passenger transport

Provisions on the carriage of passengers and their luggage are laid down in the Athens Regulation.
Provisions on passenger rights are laid down in Regulation (EU) No 1177/2010 of the European
Parliament and of the Council concerning the rights of passengers when travelling by sea and
inland waterway and amending Regulation (EC) No 2006/2004, hereinafter referred to as the
Maritime Passenger Rights Regulation .

The Athens Regulation also applies to passenger transport within the Finnish territory if carriage
takes place with a ship which:

1) is classified as other than Class A or B under Directive 2009/45/EC of the European Parliament
and of the Council on safety rules and standards for passenger ships; and

2) has been approved to carry more than twelve passengers.

The provisions of Article 4bis of Annex I and paragraph 2 of Annex II to the Athens Regulation do
not apply to ships referred to in subsection 2 above in respect of war risk insurance. Such ships
are also not required to carry a certificate of liability insurance referred to in paragraph 2 of Article
4bis of Annex I to the Athens Regulation.
Section 2 (249/2017)

Provisions applicable to the carriage of passengers and their luggage

Besides the provisions of section 1, provisions on the carriage of passengers and their luggage are
laid down in this chapter, in section 5 of chapter 21, section 9 of chapter 22, and the Protocol of
2002 to the Athens Convention of 1974 relating to the Carriage of Passengers and their Luggage
by Sea (Treaty Series of the Statute Book of Finland 69–70/2017), hereinafter referred to as the
2002 Athens Convention.

The provisions of this Act referred to in subsection 1 above do not apply to any carriage subject to
civil liability by virtue of an international convention other than the Convention referred to in
subsection 1 governing the carriage of passengers or luggage in other modes of transport in
accordance with the provisions of such convention, if such provisions are applicable as mandatory
to carriage by sea.

If any person on board a ship who is not a passenger nor employed by the carrier or performing
work for the ship sustains damage referred to in the Athens Regulation or suffers loss or damage
resulting from a delay referred to in section 11 of this chapter, the provisions on the limitation of
and exoneration from liability of the carrier laid down in the Athens Regulation and this chapter
apply to every person on the ship operator’s side who may be subject to liability.

Section 2a (249/2017)

Definitions

In this chapter, carrier means a person who, under a contract, commercially or in return for
consideration, undertakes to carry passengers or passengers and luggage on board a ship.

Passenger means any person who is being or is to be carried in a ship under a contract for the
carriage of passengers, and any person who, with the consent of the carrier, is accompanying a
vehicle or live animals which are covered by a contract for the carriage of goods.

Luggage means any article, including vehicles, carried on behalf of a passenger, provided that
such carriage is not subject to a charter party, bill of lading or any other document commonly used
for the carriage of goods.
Cabin luggage means luggage which the passenger carries with him or her, has in his or her cabin
or is otherwise in his or her charge during the voyage, or in or on his or her vehicle.

Section 3

Ensuring the ship’s seaworthiness

The carrier shall ensure that the ship is seaworthy, which also entails ensuring that the ship is
properly manned, provisioned and equipped, and that the passengers and their luggage will be
speedily and safely carried to the destination. The carrier shall also otherwise take due care of the
best interests of the passengers. (249/2017)

Luggage shall not be carried on deck.

Any deviation from the route is only allowed for the purpose of saving human life, a vessel or
goods, or on other reasonable grounds.

If a contract of carriage is for a specific ship, the carrier shall not use any other ship to perform
the carriage. (249/2017)

Section 4

Passengers’ obligations

Subsection 1 was repealed by Act 249/2017.

Passengers are obliged to comply with regulations issued on order and safety on board during
carriage.

Provisions on forcible measures are laid down in sections 18 and 19 of chapter 13 of the Seafarers’
Employment Contracts Act (756/2011). The provisions of the said section 19 on employees also
apply to passengers. (768/2011)

Passengers may carry a reasonable amount of luggage. If a passenger knows that his or her
luggage is of a character that might cause danger or material harm to persons or property, the
passenger shall inform the carrier thereof prior to the start of the voyage. Correspondingly, he or
she shall give notice if luggage other than cabin luggage requires special care and shall, as far as
possible, mark this on such luggage before the voyage begins. (249/2017)
Section 5 (249/2017)

Dangerous luggage

The carrier is entitled to forbid a passenger to bring luggage that may cause danger or material
harm to persons or property.

In the event that such luggage has been brought on board without the carrier’s knowledge of its
character, the carrier may unload, destroy or render it harmless, as the circumstances may
require, without incurring liability for damages. The same applies to luggage taken on board with
the carrier being aware of its character but subsequently found to cause danger or material harm
to persons or property that makes it untenable to keep it on board.

Where luggage has caused any loss to the carrier or damage to the ship, the passenger is liable
for damages, if such loss or damage resulted from fault or neglect on his or her part or on the part
of anyone acting on his or her responsibility.

Section 6 (249/2017)

Section 6 was repealed by Act 249/2017.

Section 7 (249/2017)

Destruction of a ship and interruption of the voyage

Should the ship’s voyage be interrupted to the extent that passengers cannot reasonably be
expected to continue travel, or if the ship is wrecked or condemned following an inciden t, the
carrier shall ensure that passengers and their luggage are carried to the destination by some other
appropriate means and cover the costs involved. If the carrier fails to do so, passengers are
entitled to cancel the contract.

Where passengers need to stay ashore due to average or other circumstances pertaining to the
ship, the carrier shall suitably arrange for their upkeep and cover the costs thereof, unless
otherwise provided in the Maritime Passenger Rights Regulation.
Section 8 (249/2017)

Withdrawal and breach of contract on the passenger’s part

If a passenger fails to embark on or abandons a voyage, the agreed fare shall nevertheless be
payable, unless such failure to embark on or abandonment of the voyage was due to the
passenger’s illness or death or other reasonable grounds and the carrier was informed thereof
within a reasonable period of time.

If the passenger is liable to pay the agreed fare under subsection 1, it shall nevertheless be
reduced by a reasonable amount if the carrier has taken another passenger in his or her stead, or
if the carrier has or could have otherwise limited his or her loss.

Section 9

War risk

If it appears after the conclusion of a contract of carriage that performing the voyage might entail
risk to passengers or the ship because of war, blockade, insurrection, civil commotion or piracy or
some other type of armed violence, or that such a risk has materially increased, both contracting
parties are entitled to withdraw from the contract of carriage, even if the voyage had commenced.
In the event of withdrawal from the contract, however, each party shall bear his or her own costs
and losses.

Section 10 (249/2017)

Reduction of carriage fares

Where a passenger abandons a voyage on the grounds referred to in subsection 1 of section 8, or

if the contract of carriage is cancelled under subsection 1 of section 7 or under section 9 after the
voyage commenced, the carriage fare shall be reduced by an amount determined by taking into
account the lengths of the remaining and agreed voyages as well as the time and costs involved in
each.

If the carrier has received a fare in excess of what was due to him or her according to subsection
1, he or she shall refund the excess.
Section 11 (249/2017)

Carrier’s liability for delay

The carrier is liable for damage caused to passengers due to delay, if it resulted from fault or
neglect on the carrier’s part or on the part of anyone acting on his or her responsibility.

If a passenger was awarded damages under the Maritime Passenger Rights Regulation, this
portion shall be deducted from the amount of damages referred to in subsection 1.

Section 12 (249/2017)

Carrier’s liability for delay in delivery of luggage

The carrier is liable for loss or damage resulting from delay in delivery of luggage, if it resulted
from fault or neglect on the carrier’s part or on the part of anyone acting on his or her
responsibility.

Section 13

Adjustment of damages

If the passenger contributed to the loss or damage referred to in section 11 or 12, the damages
may be adjusted as provided in section 1 of chapter 6 of the Tort Liability Act.

Section 14 (249/2017)

Carrier’s exoneration from liability

In order to be exonerated from liability, the carrier shall prove that the loss or damage referred to
in section 11 or 12 did not result from any fault or neglect on his or her part or on the part of
anyone acting on his or her responsibility.
Section 15 (249/2017)

Amounts of liability for delay

The carrier’s liability for any loss or damage resulting from delay referred to in section 11 is limited
to 4,150 Special Drawing Rights (SDRs) for each passenger.

Liability for delay in delivery of luggage shall not exceed:

1) SDR 1,800 per passenger for cabin luggage;

2) SDR 10,000 per vehicle;

3) SDR 2,700 per passenger for luggage not referred to in paragraphs 1 and 2.

The amounts of liability mentioned in subsections 1 and 2 refer to the aggregate liability for all loss
and damage arising during the same voyage. The amounts do not include any interest or legal
costs.

‘Special Drawing Right’ means the unit of account referred to in section 2 of chapter 23.

Section 16 (249/2017)

Increased amounts of liability and the passenger’s deductible

The carrier and the passenger may agree, expressly and in writing, to higher limits of liability than
those provided in section 15.

The carrier is entitled to deduct no more than SDR 20 for loss or damage resulting from delay in
delivery of luggage as the passenger’s deductible.

Section 17 (249/2017)

Forfeiture of the right to limitation of liability

The carrier is not entitled to invoke the provisions of section 15 or 16 on limitation of liability, if he
or she is proven to have personally caused the loss or damage resulting from delay intentionally or
through gross negligence, knowing that such loss or damage was likely to occur.
Section 18 (249/2017)

Carrier’s liability for an actual carrier

Where the carriage or part thereof is performed by anyone other than the carrier, the carrier is still
liable for any loss or damage referred to in sections 11 and 12 as if he or she had personally
performed the entire carriage. In such cases, the provisions of this chapter shall be observed as
appropriate.

Any person performing the carriage in cases referred to in subsection 1 is liable for the carriage
performed by him or her under the same provisions as apply to the carrier. Where the carrier has
undertaken obligations not referred to in this chapter, this does not bind the p erson performing
the carriage unless agreed by him or her in writing.

Where both the carrier and the person referred to in subsection 1 are liable, their liability for loss
or damage is joint and several.

Section 19 (249/2017)

Claims not based on a contract of carriage

The provisions of this chapter on the carrier’s exoneration from or limitation of liability also apply
to any action for compensation not based on a contract of carriage.

If an action for compensation is brought against a person acting on the carrier’s responsibility
under section 1 of chapter 7 or section 18 of this chapter, that person has the same rights of
exoneration from or limitation of liability as the carrier. The aggregate amount of compensation
that the carrier and the person acting on his or her responsibility may be obliged to pay shall not
exceed the limits of liability laid down in section 15.

The provisions of subsection 2 do not apply to anyone who is proven to have personally caused
the loss or damage intentionally or through gross negligence, knowing that such loss or damage
was likely to occur.
Section 20

Persons entitled to assert claims for compensation

The right to assert a claim for compensation for loss or damage sustained by a passenger or for
delay in his or her carriage is only available to that passenger personally or his or her beneficiary
or, where the passenger has died, to a person entitled to damages by virtue of chapter 5 of the
Tort Liability Act.

Section 21 (249/2017)

Contractual stipulations

Any contractual stipulation is null and void where it derogates from the provisions of subsections 2
and 3 of section 4 of this chapter, or limits the passenger rights laid down in subsection 3 of
section 5 or sections 7 –20 of this chapter, paragraph 3 or 5 of subsection 1 of section 1 of chapter
19, or section 5 of chapter 21. Any other provisions of this chapter only apply unless otherwise
agreed and subject to custom.

The mandatory provisions on passenger rights laid down in Annex I to the Athens Regulation and
in this Act apply to any contract of carriage performed in Finland’s domestic trade regardless of the
national law otherwise applicable to the contract.

Section 22 (249/2017)

Carrier’s right to exoneration from liability for delay

Notwithstanding the provisions of section 21, the carrier is entitled to exonerate himself or herself
from liability under sections 11 and 12 for the periods preceding the time when the passenger
embarks and following the time that he or she disembarks the ship. No such agreement is
permitted for the carriage by sea between the ship and the shore if such carriage is included in the
ticket price or performed using a means of transport made available by the carrier.

In respect of cabin luggage not kept in or on a vehicle brought on board by the passenger, the
carrier may exonerate himself or herself by agreement from liability under section 12 for the
periods preceding the time when the cabin luggage was brought on board and following the time
that it was taken ashore. Notwithstanding, exoneration from liability is not allowed in respect of
carriage to and from the ship referred to in subsection 1, nor for any period durin g which the cabin
luggage is in the carrier’s charge while the passenger is in a terminal building, on a quay or in
other port facilities.

If it has been agreed that a specific part of the carriage is to be performed by a named ship
operator other than the carrier, the carrier may exonerate himself or herself from liability for any
loss or damage due to delay caused by occurrences that took place during the part of the carriage
performed by the other ship operator. The same applies to cases where the contract of carriage
entitles passengers to use another carrier for part or whole of the carriage.

Section 23

Reference provision

Provisions on the court having jurisdiction over disputes involving liability under contracts of
carriage for passengers and their luggage are laid down in section 5 of chapter 21.

Provisions on the time bars for claims are laid down in section 1 of chapter 19.

Section 23a (249/2017)

Obligation to insure foreign ships

Any foreign ship licensed to carry more than twelve passengers which enters or leaves a port
within Finland’s territory shall maintain insurance or security under Article 4bis of Annex I to the
Athens Regulation, unless otherwise provided in subsection 3 of section 1 of this chapter. The
obligation to insure does not, however, apply to any ship owned by a foreign state.

Section 24 (991/2018)

Certificates of insurance or security

The Finnish Transport and Communications Agency issues, on application, a certificate attesting
that insurance or security referred to in Article 4bis of Annex I to the Athens Regulation is in force
to the registered owner of a ship entered in the transport register or the register of ships
maintained by the State Department of Åland. The Finnish Transport and Communications Agency
may also issue a certificate attesting that the obligation to insure has been satisfied, if the ship is
not registered in any of the States Parties.
The Finnish Transport and Communications Agency shall withdraw a certificate where the
conditions of issue of the certificate are no longer satisfied.

The certificate shall be kept on board the ship and a copy of the certificate shall be deposited with
the Finnish Transport and Communications Agency. No ship shall be used for maritime operations
without a certificate.

The certificates referred to in this section are issued for a fee as provided in the Act on Criteria for
Charges Payable to the State.

Further provisions on the certificates referred to in this section are issued by government decree.

Section 25 (991/2018)

Supervision of compliance with the obligation to insure

The Finnish Transport and Communications Agency supervises compliance with Article 4bis of
Annex I to the Athens Regulation.

The Finnish Transport and Communications Agency is entitled to forbid a ship’s departure and
interrupt its passage if the ship does not carry on board the certificate of insurance or security
required under Article 4bis of Annex I to the Athens Regulation.

Sections 26–28

Sections 26–28 were repealed by Act 337/2018.

PART V

MARITIME CASUALTIES

Chapter 16 (1363/2006)

Salvage

Section 1 (1363/2006)

Definitions

For the purposes of this chapter:

1) salvage means any action undertaken to assist a vessel or any other property which is
foundering or in danger in any waters;

2) vessel means any watercraft and any other equipment capable of navigation;

3) property means any property not permanently and intentionally attached to the shoreline;

4) damage to the environment means substantial physical damage to human health, marine life
or natural resources in coastal or inland waters or areas adjacent thereto, caused by pollution,
contamination, fire, explosion or similar serious incidents.

Section 2 (1363/2006)

Scope of application

The provisions of this chapter apply to disputes as to salvage considered in Finnish court or
arbitration proceedings in Finland.

The provisions of this chapter also apply where both the salved vessel and the vessel performing
the salvage operations belong to the same owner.

The provisions of this chapter only apply to salvage operations performed by public authorities
subject to other legal provisions elsewhere. However, any salvor who has taken part in such
salvage operations is entitled to a salvage reward or special compensation in accordance with the
provisions of this chapter.
The provisions of this chapter do not apply to fixed or floating platforms or to mobile offshore
drilling units when such platforms or units are on location engaged in the exploration, exploitation
or production of seabed mineral resources.

Furthermore, the provisions of this chapter do not apply to vessels and property referred to in the
Antiquities Act (295/1963), unless individually agreed.

Section 3 (1363/2006)

Freedom of contract, capacity to contract and adjustment of contracts

The provisions of this chapter may be derogated from by contract. Notwithstanding, no contract
may limit the obligation of salvors, masters, operators or owners of vessels or other property
under the provisions of this chapter to prevent or minimise damage to the environment.
Subsection 5 of section 11 below lays down provisions on the validity of certain contracts
concerning the apportionment of salvage rewards.

The master of a vessel has the authority to conclude salvage contracts on behalf of the owner of
the vessel. The owner, operator and master of the vessel each has the authority to individually
conclude salvage contracts on behalf of the owner of the property which is or was on board the
vessel.

A contract for salvage operations or any term thereof may be adjusted or disregarded if the
contract has been entered into under undue influence or the influence of danger and the contract
or its terms are inequitable, or if the salvage reward or special compensation under the contract is
not reasonably proportionate to the salvage operations performed.

The provisions of subsection 3 of section 10 shall be observed even when a contract for salvage
operations exists.

Section 4 (1363/2006)

Duties of the salvor, owner, operator and master

The salvor owes a duty to the owner and operator of the vessel and the owner of other property
subject to salvage:

1) to carry out the salvage operations with due care;

2) to exercise due care to prevent or minimise damage to the environment during the course of
the salvage operations;

3) to seek assistance from other salvors whenever circumstances reasonably require; and

4) to allow other salvors to take part in the salvage operations if requested to do so by the
owner, operator or master of the vessel or the owner of other property in danger and such
request is deemed reasonable; should such request prove unreasonable, the amount of the
reward is not affected by the participation of others.

The owner, operator and master of the vessel and the owner of other property subject to salvage
owe a duty to the salvor:

1) to cooperate fully with the salvor during the course of the salvage operations;

2) to exercise due care to prevent or minimise damage to the environment while carrying out the
salvage operations; and

3) to accept redelivery of the vessel or other property when reasonably requested by the salvor
to do so after it has been brought to a place of safety.

Section 5 (1363/2006)

Right to a salvage reward

The salvor has the right to a salvage reward if the salvage operations produced a useful result.
The salvage reward shall not be fixed at a higher level than the value of the salved vessel and
other property. No interest or legal costs are included in the salvage reward.

Saving human life does not as such give the right to a salvage reward. However, anyone who
saved human lives during salvage operations is entitled to a fair share of the salvage reward or
special compensation due to the salvor.

Notwithstanding subsection 1 above, claims may be asserted for the special compensation referred
to in section 9.
Section 6 (1363/2006)

Fixing the amount of salvage reward

The amount of salvage reward shall be fixed with a view to encouraging salvage operations, taking
into account the following criteria:

1) the value of the salved vessel and other property;

2) the skill and efforts of the salvors in salving the vessel, other property and human life;

3) the skill and efforts of the salvors in preventing and minimising damage to the environment;

4) the measure of success obtained by the salvors;

5) the nature and degree of the danger;

6) the time used and expenses and losses incurred by the salvors;

7) the risk of liability and other risks run by the salvors or their equipment;

8) the speed of the salvage operations;

9) the availability and use of vessels or other equipment intended for salvage operations;

10) the state of readiness and efficiency of the salvors’ equipment and the value thereof.

Section 7 (1363/2006)

Liability for the salvage reward

The owner of the vessel and other property shall pay the salvage reward in proportion to the
respective value of the salved property belonging to them.

Section 8 (1363/2006)

Apportionment of the salvage reward between several salvors

The apportionment of a salvage reward between salvors shall be made taking into consideration
the criteria mentioned in section 6.
Section 9 (1363/2006)

Special compensation

If the salvor has carried out salvage operations in respect of a vessel which by itself or its cargo
threatened damage to the environment, he or she shall be entitled to special compensation for his
or her expenses from the owner and operator of the vessel. However, such special compensation
is only payable to the extent that it exceeds the salvage reward fixed in accordance with section 6.

If, in the circumstances referred to in subsection 1, the salvor has prevented or minimised damage
to the environment, the special compensation may be increased by an amount equivalent to a
maximum of 30% of the expenses incurred by the salvor. However, if deemed fair, such special
compensation may be increased to no more than 100% of the expenses incurred by the salvor. In
such cases, the criteria mentioned in section 6 shall be taken into consideration.

‘Salvor’s expenses’ means the out-of-pocket expenses reasonably incurred by the salvor in the
salvage operation and a fair rate for equipment and personnel justifiably used in the salvage
operation. Compensation shall be determined taking into consideration the criteria mentioned in
paragraphs 8–10 of section 6.

If the salvor has been negligent and has thereby failed to prevent or minimise damage to the
environment, he or she may be deprived of the whole or part of any special compensation.

Section 10 (1363/2006)

Right to compensation in certain cases

Anyone acting in accordance with a contract entered into before the danger arose is only entitled
to a salvage reward or special compensation if the operations performed cannot be reasonably
considered as due performance of the contract.

No person who has taken part in salvage operations notwithstanding the express and justifiable
prohibition of the owner, operator or master of the vessel is entitled to a salvage reward or special
compensation. Nor does the right to a salvage reward or compensation exist if the owner of any
other property in danger which is not and has not been on board the vessel has expressly and
justifiably prohibited participation in the salvage operations.

A salvage reward or special compensation may be denied in full or in part if the salvage operations
have resulted from or been made more difficult because of fault or neglect on the salvor’s part or
if the salvor has been guilty of fraud or other dishonest conduct during t he salvage operations.
Section 11 (1363/2006)

Apportionment of the salvage reward between the operator and crew

If a vessel registered in Finland has salved something while underway, payment shall first be made
from the salvage reward to cover any loss or damage caused to the vessel, cargo or any other
property on board as a result of the salvage operations, any costs of fuel and the wages and
provisions of the master and crew arising from the salvage operations, as well as any
compensation referred to in subsection 3.

The operator will receive one fifths of the remaining share of the salvage reward ( net salvage
reward), and the master and actual crew will respectively receive one third and two thirds of the
remainder. The share of the crew members will be apportioned in proportion to their wages.
However, the master’s share shall always be at least twice that of the highest-paid sailor. Any pilot
on board the vessel will receive a portion of the salvage reward as if he or she were a crew
member and, unless he or she is in service of the operator, were paid wages equivalent to the
highest-ranking deck officer.

If a sailor has excelled in taking part in the salvage operations or exposed himself or herself to
special danger, he or she may be awarded compensation in addition to the share provided in
subsection 2. Any sailor asserting a claim for such compensation shall inform the operator or
master of the vessel thereof within three months of completion of the salvage operations.

If called for by special circumstances, such as the purpose of the vessel’s voyage or the manner of
calculating wages or remuneration for those in service of the vessel, the salvage rewards may be
apportioned otherwise than specified in paragraphs 1–3.

Any contract stipulating that the share payable to the master or crew of any salvage reward that
may be earned on board the vessel is smaller than provided in this section is null and void, unless
the vessel is engaged in professional salvage services and is specifically equipped for this pu rpose,
or unless the contract was concluded for specific salvage operations upon signing up.

The provisions of this section apply to apportionment of a salvage reward due to a vessel owned
by the Finnish Government even when the vessel is used only on government non-commercial
service. However, the master’s share of the salvage reward is payable to the master’s supervisor
or equivalent if that person assumed command of the vessel upon undertaking salvage operations.
The regular master will receive his or her portion of reward out of the portion due to the crew
members in proportion to his or her wages. The Government may waive the salvage reward in full
without incurring liability to those on board the vessel. Further provisions on the wages to be
taken into account in the apportionment of the share of a salvage reward due to those on board
the vessel, the apportionment of the share between different government-owned vessels and the
waiver of the salvage reward due to a vessel are laid down by government decree.

A vessel not registered in Finland is subject to the national law of the state of its registry in respect
of the apportionment of a salvage reward. If the salvage has not been carried out from a vessel,
the apportionment is determined by the law applicable to the contract between the salvor and
those on his or her service.

Section 12 (1363/2006)

Security

A person liable for payment under the provisions of this chapter shall provide security for payment
of the salvage reward and special compensation at the request of the salvor. Such security shall
also cover interest and legal costs. When such security has been provided, the salvor shall not
enforce his or her maritime lien in respect of salvage reward claims.

The owner and operator of the salved vessel shall contribute to ensuring that the owner of the
cargo provides security for the claims against him or her before the cargo is released. Such
security shall cover interest and legal costs.

The salved vessel or any other salved property shall not, without the consent of the salvor, be
removed from the port or place at which such property first arrives after the completion of the
salvage operations, if no security has been put up for the salvor’s claims.

If the vessel is delayed or the owner of the property is unable to take charge thereof because the
salvor refuses to accept the security tendered, but the security tendered is deemed to have been
satisfactory and sufficient, the salvor shall compensate for any and all loss caused thereby.

Section 13 (1363/2006)

Advance payment

The court or arbitration tribunal having jurisdiction over the claims of the salvor may, at the
salvor’s request, issue an interlocutory order stating that the salvor be paid a reasonable advance
out of a salvage reward or special compensation. Where required by the nature of the matter,
such advance may be made on condition that the salvor provide security for the amount receivable
or other terms that are reasonable in view of the circumstances.

Section 14 (1363/2006)

Salvage reward claims in respect of cargo

Where a vessel has salved another vessel belonging to the same owner or its cargo, the master of
the salved vessel shall not represent the cargo owner when a salvage reward claim for the cargo is
raised.

If the owner of the cargo cannot be immediately established, the court shall appoint a qualified
and competent trustee to represent the cargo owner in all matters concerning salvage reward
claims in respect of the cargo. The same applies if the cargo owner cannot be reached wit hout
difficulty or loss of time.

Section 15 (1363/2006)

State-owned and humanitarian cargoes

No provision of this chapter gives rise to any right to arrest cargo owned by a foreign state or to
take any other precautionary measures in respect thereof if the cargo is used only on non-
commercial service and enjoys immunity during salvage operations under generally recognised
principles of international law.

No provision of this chapter gives rise to any right to arrest cargo donated by a state for
humanitarian purposes or to take any other precautionary measures in respect thereof, if such
state has undertaken to pay for salvage operations performed in respect of such cargoes.
Chapter 16a (480/2021)

Average Adjuster’s duties, decision-making procedure and compensation

Section 1 (480/2021)

Appointment of the Average Adjuster

For the purposes of preparing indemnity adjustments based on marine insurance and other duties
laid down in section 3, there is a position of the Average Adjuster, which is autonomous and
independent of shipping and insurance businesses. The Average Adjuster is appointed by the
Government.

The qualifications required for the Average Adjuster’s position include any Master’s degree in law
other than international and comparative law, a certificate of competence as an Average Adjuster,
good knowledge of insurance and tort law and the duties relevant to the job description, as well as
proficiency in Finnish, Swedish and English required for the position.

No person who is in bankruptcy or whose legal competency has been limited can be appointed as
the Average Adjuster.

The Average Adjuster shall be impartial and independent in this capacity. The provisions on
criminal liability for acts in office apply to the Average Adjuster. Provisions on liability for damages
are laid down in the Tort Liability Act (412/1974).

Section 2 (480/2021)

Average Adjuster’s deputy

The Average Adjuster has a deputy to consider and resolve matters in which the Average Adjuster
is disqualified. The provisions on the Average Adjuster apply to the Average Adjuster’s deputy.

Section 3 (480/2021)

Average Adjuster’s duties

Unless otherwise agreed, the Average Adjuster’s duties are to:

1) draw up indemnity adjustments based on marine insurance on application by policyholders,
insured parties or insurers;

2) draw up indemnity adjustments based on boat insurance on application by policyholders,

insured parties or insurers, where such insurance was taken out for a boat used for
commercial purposes;

3) resolve questions of the level and apportionment of the amount of liability of ship operators
referred to in subsection 4 of section 9 of chapter 9 at the request of the parties involved;

4) resolve and issue decisions on disputes over distance freight referred to in subsection 3 of
section 21 of chapter 14 at the request of the parties involved;

5) conduct the adjustment and apportionment of general average referred to in subsection 1 of

section 2 of chapter 17;

6) conduct the adjustment and apportionment of particular average referred to in subsection 3

of section 6 of chapter 17 on demand of a party in average.

Where an insurer and a policyholder have agreed as part of the terms and conditions of insurance
that any disputes relating to boat insurance may be referred to the Average Ad juster for indemnity
adjustment, the Average Adjuster shall also issue an indemnity adjustment at the request of the
insurer, policyholder, or insured party. After the entry into force of this Act, insurers shall inform
the policyholders or insured parties of the possibility of including in the insurance contract a term
stipulating in accordance with this section that any disputes are to be resolved by an indemnity
adjustment issued by the Average Adjuster.

The Average Adjuster also issues, at the request of policyholders, insured parties or insurers,
opinions on matters relating to boat insurance other than those referred to in paragraph 2 of
subsection 1 or in subsection 2.

Section 4 (480/2021)

Indemnity adjustment procedure

The Average Adjuster shall draw up the indemnity adjustments referred to in paragraphs 1 and 2
of subsection 1 and subsection 2 of section 3 in compliance with this chapter.
Subject to the provisions of this chapter, the Average Adjuster shall draw up indemnity
adjustments in compliance with the provisions of the Arbitration Act (967/1992) on the procedure
to be observed in arbitration proceedings.

Section 5 (480/2021)

Applications for indemnity adjustment

Cases concerning indemnity adjustment are instituted by an application submitted to the Average
Adjuster. An application shall include:

1) the contact details of the applicant;

2) the contact details of the other parties;

3) the insurance policy and its terms and conditions, as well as any other documents concerning
the insurance contract;

4) the applicant’s claims;

5) any clarifications made on the basis of the insurance, invoices and other material which the
applicant wishes to invoke;

6) an authorisation.

Submission of an application interrupts the limitation period of the debt referred to therein in
accordance with section 11 of the Act on the Limitation of Liability for Debts (728/2003).

Section 6 (480/2021)

Indemnity adjustments

The Average Adjuster shall draw up an indemnity adjustment within 60 days of receipt of all of the
information from the parties involved that he or she considers necessary. The Average Adjuster
may extend the time limit in extensive and difficult cases.

An indemnity adjustment drawn up by the Average Adjuster shall include:

1) the date of issue of the indemnity adjustment;

2) the contact details of the parties involved;

3) an account of the claims and responses of the parties, including their reasoning;

4) a list of evidence presented;

5) rationale;

6) the legal provisions and rules applied;

7) the decision on the claim and the decision on compensation demanded by the parties for
expenses.

The Average Adjuster shall sign the indemnity adjustment and submit it to the parties. Provisions
on appeals are laid down in section 8 of chapter 21. The indemnity adjustment shall be
accompanied by instructions for appeal.

Section 7 (480/2021)

Average Adjuster’s opinions

Requests for opinion addressed to the Average Adjuster in cases referred to in subsection 3 of
section 3 shall include:

1) the contact details of the party requesting an opinion;

2) the contact details of the other parties involved;

3) the insurance policy and its terms and conditions, as well as any other documents concerning
the insurance contract;

4) an account of the matters that the request for opinion concerns and any documents on the
basis of which the opinion is being requested;

5) an authorisation.

The Average Adjuster issues an opinion after having heard the parties to the insurance contract
and the insured party and having studied the material presented by the parties. The Average
Adjuster shall issue the opinion within 30 days of receipt of all of the information from the parties
that he or she considers necessary. The Average Adjuster may extend the time limit in extensive
and difficult cases.

Any opinion issued by the Average Adjuster shall contain an account of the case subject to the
request for opinion and a legal assessment thereof, including rationale. The Average Adjuster shall
sign the opinion and submit it to the parties. Such opinions are neither binding on the parties nor
enforceable. Opinions are not open to appeal.

Section 8 (480/2021)

Procedures in other cases

Provisions on the procedures in cases referred to in paragraphs 3–6 of subsection 1 of section 3

are laid down in section 7 of chapter 17.

The Average Adjuster shall make the decisions referred to in paragraphs 3 and 4 of subsection 1
of section 3 within three months of receipt of all of the information from the interested parties that
he or she considers necessary. The Average Adjuster may extend the time limit in extensive and
difficult cases.

Section 9 (480/2021)

Compensation payable to the Average Adjuster

The Average Adjuster confirms the amount of compensation payable for his or her work and
expenses in the cases which he or she has considered. The amount of compensation shall be
reasonable considering the scope and difficulty of the case.

The insurer is obliged to pay the Average Adjuster’s compensation for drawing up the indemnity
adjustments referred to in paragraphs 1 and 2 of subsection 1 and subsection 2 of section 3,
unless the application submitted by the insured party or policyholder was manifestly unfounded,
and the requesting party is obliged to pay for drawing up an opinion referred to in subsection 3 of
section 3. Compensation for conducting the adjustment and apportionment of general average
referred to in paragraph 5 of subsection 1 of section 3 shall be jointly and severally payable by the
parties in general average.

In any other cases, the Average Adjuster decides how the liability for compensation is to be
distributed between the interested parties in compliance with chapter 21 of the Code of Judicial
Procedure, as applicable.

Provisions on appeals are laid down in section 8 of chapter 21 of this Act .

Section 10 (480/2021)

Publicity in cases considered by the Average Adjuster

Cases considered by the Average Adjuster shall be conducted in compliance with the Act on the
Publicity of Court Proceedings in General Courts (370/2007).

Chapter 17

Average

Section 1

General average

The 1974 York-Antwerp Rules apply, unless otherwise agreed, to any damage, loss and expense
arising from general average and the apportionment thereof as specified by decree.

Section 2 (480/2021)

Average adjustment and the Average Adjuster

General average shall, unless otherwise agreed, be adjusted and apportioned by an average
adjustment in the country and place determined by the operator of the ship. In Finland, average
adjustments are carried out by the Average Adjuster.

Section 3

Damage assessment

Any damage to a ship or its accessories in general average shall, unless otherwise agreed, be
assessed by surveyors appointed in accordance with section 17 or chapter 18 in the port where
repairs are carried out, if performed underway, but otherwise in the port of destination of the
voyage. Damage to cargo shall be assessed, at the latest, in the port of discharge.
Section 4

Request for average adjustment

The ship operator or any person operating the ship in lieu of the operator shall request the
Average Adjuster to carry out an average adjustment without delay while providing the names and
addresses of any known interested parties.

Every person affected by the average is obliged, without delay, to provide the Average Adjuster
with any documents deemed necessary by the latter for the purpose of adjustment and
apportionment of loss or damage, and to otherwise provide him or her with any necessary
information.

Section 5

Owner’s liability for average contribution and the operator’s right of retention

If the average contribution is payable out of cargo or other goods, the owner is liable in rem but
not in personam .

Provisions on the right of the operator to retain the goods liable for the average contribution are
laid down in section 20 of chapter 13 and in section 14 of chapter 25. If such goods are released
without their owner undertaking personal liability for the average contribution and, where
required, providing security for it, the operator is liable for the average contribution to all of the
other parties in average.

Section 6

Particular average

Any loss, damage or expense sustained by a ship or cargo as a result of an incident, which is not
to be allowed in general average, nor to be apportioned according to similar criteria under
subsection 3 of section 15 of chapter 13 or section 40 of chapter 14, shall be regarded as
particular average and fall upon the items which sustained the loss or damage or caused the
expense.

If expenses allowed in particular average have been incurred jointly in respect of a ship and cargo
or any part of the cargo, or parts thereof belonging to different owners, such expenses shall be
apportioned between the items out of which they arose in accordance with the criteria applicable
to general average. Costs for salvage of cargo are apportioned between the value of cargo and the
freight payable for the goods.

The average adjustment and apportionment provided in subsection 2 shall be made by the
Average Adjuster upon request by any party in average.

Section 7

Carrying out an average adjustment

Upon request for average adjustment, the Average Adjuster shall, without delay, invite the parties
in average by public notice in the Official Gazette to present in writing, within a short period of
time specified by the Average Adjuster, what they consider necessary to protect their rights and to
produce the documents they wish to invoke to the Average Adjuster. Should the Average Adjuster
find the documents submitted to be incomplete, he or she shall request the relevant parties to
provide the necessary clarifications as soon as possible.

Upon expiry of the period specified in the public notice or, in the event of failure to submit
complete documentation within the said period, as soon as this is done, the Average Adjuster
shall, without delay and no later than within three months thereafter, complete the average
adjustment in two copies and accompanied by instructions for appeal on a date announced by
public notice posted on the district court noticeboard and in the Official Gazette. The Average
Adjuster may extend the time limit in extensive and difficult cases. Provisions on appeals are laid
down in section 8 of chapter 21. (480/2021)

The Average Adjuster shall give notice to the interested parties or their agents, if their places of
residence are known, of the public notice referred to in subsection 1 above and of the date of
publication referred to in subsection 2.

Any notice referred to in subsection 3 of this section and subsection 2 of section 8 of chapter 21
may be submitted by letter.

Section 8

Rectification of average adjustment

If goods allowed as a loss to be made good in average adjustment are recovered, or if a liable
party has subsequently made good any loss, damage or expense included in the apportionment ,
the average adjustment shall be rectified accordingly by an additional statement. However, the
preparation of an average adjustment shall not be delayed merely because of hopes for recovery
of a sacrifice or compensation for a loss, damage or expense.

Chapter 18

Record books, maritime declarations and surveys (98/1997)

Record books

Section 1 (991/2018)

Obligation to keep record books

The record books referred to in this Act are a ship’s logbook, an engine logbook, a combined ship
and engine logbook, a journal, a fishing vessel log and a radio logbook. The penal provisions of
chapter 20 do not apply to journals and radio logbooks. Provisions on the record books relating to
prevention of environmental pollution are laid down in the Act on Environmental Protection in
Maritime Transport (1672/2009).

Ships of 500 gross tonnage and more engaged on international voyages shall keep a ship’s
logbook and an engine logbook. If a ship engaged on international voy ages has a gross tonnage
below 500, a combined ship and engine logbook may be kept instead of separate ship’s and
engine logbooks. Ships with a gross tonnage below 100 engaged on international voyages may
keep a journal instead of the record books mentioned above.

Ships engaged on domestic voyages with a gross tonnage of 300 or more or carrying 100 or more
passengers shall keep a combined ship and engine logbook or separate ship’s and engine
logbooks. If a ship’s voyage between ports takes no more than 20 minutes, it may keep a journal
instead of the record books mentioned above. Ships engaged on domestic voyages with a gross
tonnage of 150 or more but below 300 shall keep at least a journal.

Fishing vessels of 24 meters or more in length shall keep a combined ship and engine logbook or
separate ship’s and engine logbooks. Fishing vessels of 15 metres and over but no more than 24
metres in length shall keep at least a fishing vessel log.
Ships that must be equipped with radio installations under international conventions or under
regulations issued by the Finnish Transport and Communications Agency in force shall keep a radio
logbook.

Section 2 (991/2018)

Format of record books and preservation of information

Record books are kept using an electronic system approved by the Finnish Transport and
Communications Agency or manually. Any radio, cargo, oil, garbage or equivalent record books
kept on the ship may be integrated into an electronic record book.

The entries made in a record book shall be processed so as to ensure the availability and
accessibility of the information. The information shall remain intact and unchanged for the entire
period of retention. The preservation of an electronic record book shall be reliably ensured in order
to prevent the loss or corruption of the entries made in the records due to a power cut or some
other technical failure.

The ship operator is responsible for preserving the record book. Entries made in the record book
shall be stored for at least three years after the final entry has been made. Any attachments to the
record book shall be stored for at least three years as from the date of the final entry. If judicial
proceedings have been initiated due to an event recorded in the record book within the said
period, the record book shall be preserved until the decision on the matter is final.

The manufacturer of the system used by the electronic record book shall seek approval for the
system from the Finnish Transport and Communications Agency. The Finnish Transport and
Communications Agency may issue further orders on the format of the record books and
preservation of information and the conditions for approval of an electronic record book system in
compliance with the requirements of international conventions.

Section 3 (991/2018)

Keeping a record book

The ship’s master shall ensure that a record book referred to in section 1 is kept on the ship. The
record book is kept by the officer of the crew on watchkeeping duty. The record book shall be kept
in the working language of the ship or in English.
Entries shall be made in the record book in chronological order for every watch. The person in
charge of keeping the record book shall verify the entries made by his or her endorsement. The
ship master shall also endorse the entries in the record book, with the exception of the engine
logbook, which is endorsed by the ship’s chief engineer officer.

An entry made in the record book or an attachment included therein may not be deleted or
obscured. The person keeping the record book shall correct any erroneous entries he or she has
made by making a new entry in the relevant place in the book or its attachment or by attaching a
correct attachment to an erroneous one. Any correction made to the record book or its attachment
shall indicate the time, content and author of the correction.

The Finnish Transport and Communications Agency may issue further orders on keeping record
books as well as on entries to be made therein and endorsement thereof.

Section 4 (991/2018)

Details entered in record books

Information about all incidents on board a ship during its voyage and port call shall be entered in
the ship’s logbook. Entries in the logbook shall also include any details that may be useful for the
ship operator, cargo owner, insurer or some other party whose rights may be affected by the
events occurring during the voyage.

Entries in the engine logbook shall include details relating to operating the machinery and the
ship’s fuel supplies.

Entries in a combined ship and engine logbook, a journal and a fishing vessel log shall include
details equivalent to what is provided in subsections 1 and 2 on the details entered in the ship’s
logbook and engine logbook to the extent required for the record book in question.

Entries in a radio logbook shall include information about any distress, urgency and safety traffic
as well as about other incidents related to radio operations.

The Finnish Transport and Communications Agency may issue further orders on entries to be
made in the record books and on the attachments thereto.
Section 5

Disclosure of information (482/2017)

No person shall be denied access to information on the contents of a record book on which his or
her right depends. In respect of collision between vessels, this shall only be observed in judicial
proceedings involving an action brought on the basis of such collision.

The provisions of subsection 1 also apply to record books kept on Norwegian, Swedish or Danish
ships when such ship is at a Finnish port.

Sensitive personal data may only be disclosed from the record book at the consent of the person
concerned or if necessary to establish, exercise or resolve legal claims. (482/2017)

Subsection 4 was repealed by Act 482/2017.

Maritime declarations

Section 6 (991/2018)

Obligation to submit a maritime declaration

The master of a Finnish ship shall submit a maritime declaration whenever:

1) any person has or can be assumed to have died or sustained serious bodily injury in
connection with ship operations while at sea;

2) any person employed or otherwise carried on the ship has or can be assumed to have died or
sustained serious bodily injury otherwise in connection with ship operations;

3) any person has died on board the ship;

4) a serious case of poisoning has or can be assumed to have occurred on board the ship;

5) the ship has collided with another vessel or run aground;

6) the ship has been abandoned at sea;

7) substantial loss or damage has or can be assumed to have been caused to the ship in
connection with its operations or, while at sea, to property outside the ship; or

8) a substantial fire, explosion or shifting of cargo has occurred.

In respect of Finnish ships, a maritime declaration shall also be given when, following an incident
that has or can be assumed to have taken place in connec tion with ship operations, ordered by the
Finnish Transport and Communications Agency or requested by the master or operator of the ship
or, in the event of substantial loss of or damage to the goods, requested by the cargo owner or
cargo insurer.

If submission of a maritime declaration is ordered by the Finnish Transport and Communications

Agency or requested by the cargo owner or insurer, notice thereof shall be given to the master or
operator of the ship, who shall submit a declaration in accordance with subsection 2 of section 7.

Provisions on exemptions from the obligation to submit a maritime declaration in certain cases are
laid down in subsection 2 of section 11 and subsection 2 of section 14.

Section 7 (991/2018)

Submission and deferral of a maritime declaration and the master’s duty to report

A maritime declaration is submitted in accordance with section 1 of chapter 21 to the Maritime

Court of the place where the incident took place or where the ship or its master first arrives.
Submission of a maritime declaration may be deferred until the ship arrives at another port if
considerable savings in costs or other material benefits can thereby be achieved for the ship
without disregarding the purpose of the maritime declaration. The master or operator of the ship
shall promptly notify the Finnish Transport and Communications Agency in writing of any such
deferral and its reasons.

For the purposes of submitting a maritime declaration, the master shall report, either in person or
through an agent, to the Maritime Court having jurisdiction under subsection 1 or its chairperson
as soon as possible. Such a report shall be made in writing and be accompanied by a copy of the
notification mentioned in section 8 and details of the ship’s whole crew and any persons assumed
to be in a position to clarify the matter and, where possible, anyone whom the matter may
concern, or their agents.

In Norway, Sweden and Denmark, maritime declarations in respect of Finnish ships are submitted
to the court having jurisdiction under national law. Otherwise, maritime declarations are submitted
abroad to a Finnish diplomatic or consular mission authorised by the Ministry for Foreign Affairs to
accept maritime declarations. Where convenient, assistance for receipt of a maritime declaration
may be provided by two persons versed in maritime issues summoned by the mission, preferably
Finnish, Norwegian, Swedish or Danish nationals, who are not disqualified from acting as judges.
In the absence of a Finnish diplomatic or consular mission authorised to perform this function, a
maritime declaration may be submitted to the Norwegian, Swedish, or Danish mission authorised
to accept maritime declarations under the law of its home country.

Where a maritime declaration is submitted abroad, or if a foreign authority has performed the
investigation of the causes of the incident, the master shall ensure that a copy of the record of the
proceedings certified by the relevant authority is submitted to the Finnish Transport and
Communications Agency and the Safety Investigation Authority.

Where a ship is missing or wrecked without survivors, the investigation following the incident shall
be conducted in the ship’s home port, unless the Finnish Transport and Communications Agency
orders the proceedings to be conducted elsewhere.

Further provisions on the application of the provisions governing maritime declarations are issued
by decree.

Section 8 (991/2018)

Written notification for a maritime declaration

In cases referred to in section 6, the ship’s master shall submit a written notification for a maritime
declaration without delay to the Finnish Transport and Communications Agency or, if the ship is
abroad, to the nearest Finnish diplomatic or consular mission referred to in subsection 3 of section
7.

A written notification on collision between vessels shall not be disclosed to the other party until the
maritime declaration to be submitted on the incident has been taken up by a court or some other
appropriate authority for consideration.

A Finnish domestic or consular mission which has received a written notification referred to herein
shall, once the notification is no longer needed, send it to the Finnish Transport and
Communications Agency without delay.

The Finnish Transport and Communications Agency may issue further orders on written
notifications referred to herein and on the contents thereof.
Section 9 (991/2018)

Scheduling a session for a maritime declaration

Where a report for submission of a maritime declaration is made as provided in section 7, the
Maritime Court shall determine, as far as possible according to the master’s preference, a time for
a session for submission of the maritime declaration to the Court and order the master to, at that
time, present the ship’s record books and any notebooks related thereto in original copies, if such
books were kept and are still available, and any other documents or items that may shed light on
the case, as well as to state the persons assumed to be in the best position to clarify the case fo r
the purpose of hearing them before the Court. The time of the session shall be announced by
public notice posted on the Court’s noticeboard or, where possible without delay, separately
notified to any persons whom the matter may concern, or to their agents in location, as well as to
the Finnish Transport and Communications Agency and also to a public prosecutor.

The presentation obligation referred to in subsection 1 above may be ordered subject to a penalty
payment, where deemed necessary.

The experts shall be informed of the report for submission of a maritime declaration without delay.
They shall examine the documents accompanying the report and, if time permits, explain to the
Maritime Court prior to the session the issues on which information is required in marine
technological or mechanical engineering or some other terms in order to establish the nature of
the incident.

Section 10

Consideration in the Maritime Court

While considering a maritime declaration, the Court shall seek to obtain a full acco unt of the
casualty and its causes. At the beginning of the proceedings, the contents of the ship’s record
books and notebooks shall, where necessary, be compared with each other and with the copy of
the notification referred to in section 8 accompanying the report. Thereafter, first the master and
then the persons summoned to court to clarify the matter shall, each separately where possible,
give consistent accounts of the incident. If any person’s account is incomplete or vague, the Court
shall seek to find out what he or she has actually observed. When all of the accounts have been
given, the master and any parties present shall be given an opportunity to give a statement
thereon. Thereafter, the Court shall request the master and those summoned to the Co urt to
clarify the matter, in the absence of any legal constraints, to confirm their respective accounts by
oath or affirmation after these have been read back from the record.

The Court may also summon to the hearing other members of the crew besides those named by
the master, as well as persons who are not crew members and, where necessary, hold an
inspection on the ship or at the scene of the incident and obtain expert opinions on issues the
evaluation of which requires special expertise. Any person summoned to be heard or used for
assistance is compensated out of central government funds at the Court’s discretion.

If a maritime declaration is submitted in a place other than that mentioned in subsection 1 of

section 7, the Court shall note the reason in the record.

Section 11 (991/2018)

Submission of a maritime declaration following collision between vessels

If a maritime declaration concerns a ship’s collision with another vessel, the Maritime Court may
allow the submission of the maritime declaration to be deferred if the maritime declaration can
thereby be submitted concurrently with the maritime declaration or a corresponding declaration to
be submitted on the part of the other vessel. Such deferral shall not be granted for a period longer
than absolutely necessary. Where the purpose of the deferral is not attainable, the Court shall,
when requested by the master or operator of the ship for which a maritime declaration is first
submitted and in the absence of any particular reasons for not doing so, ord er that the maritime
declaration be submitted wholly or partly in camera and that the occasion be attended by no
person other than the ship operator and the public prosecutor as well as the competent
representatives of the Finnish Transport and Communications Agency, the Finnish Customs and
the Safety Investigation Authority.

Where the ship has collided with a foreign vessel in respect of which no declaration equivalent to a
maritime declaration is to be submitted, a maritime declaration is not required, unless otherwise
ordered by the Finnish Transport and Communications Agency.

Section 12 (991/2018)

Receipt of a maritime declaration in certain cases

For a ship with a home port in Norway, Sweden or Denmark, a competent Finnish court shall
receive a maritime declaration where considered necessary by the master or operator of the ship
or the competent public authority of the ship’s flag state. In respect of other foreign ships,
maritime declarations are received in such cases, if there is reason to do so.

If the Finnish Transport and Communications Agency considers that an incident occurring in
connection with the operations of a foreign ship requires investigation for maritime safety
considerations and the ship is at a Finnish port, the Finnish Transport and Communications Agency
may order a maritime declaration to be submitted.

If the public authority mentioned in subsection 1 considers a maritime declaration necessary or if

the Finnish Transport and Communications Agency orders its submission, notice thereof shall be
given to the master or operator of the ship. The maritime declaration is submitted upon
notification made by either of them in accordance with subsection 2 of section 7.

Section 13 (991/2018)

Maritime declaration submitted to a Finnish diplomatic or consular mission

The provisions of sections 10–12 on maritime declarations submitted to a court also apply, as
appropriate, to maritime declarations submitted to Finnish diplomatic or consular missions. A
mission may not, however, administer an oath or affirmation nor issue a notice of a conditional
fine.

An extract of the record of the maritime declaration proceedings shall be submitted free of charge
to the Finnish Transport and Communications Agency. Such record extract is given to the operator
or master of the ship on request.

Section 14 (991/2018)

Supplementation and non-submission of a maritime declaration

Should a maritime declaration be found to be incomplete in some respects, the Finnish Transport
and Communications Agency may order it to be supplemented. In such cases, the provisions of
subsection 3 of section 6 and section 7 apply correspondingly.

If a satisfactory account of an incident referred to in section 6 has been or can be expected to be

attainable in some other way, the Finnish Transport and Communications Agency may waive
submission of a maritime declaration or allow deferral of its submission while waiting for such an
account.
Reporting casualties and incidents (482/2017)

Section 15 (991/2018)

Reporting casualties and incidents during ship operations to the Finnish Transport and
Communications Agency

The master or operator of the ship shall promptly notify the Finnish Transport and
Communications Agency in writing of any casualties and incidents that have occurred on board a
Finnish ship in connection with the operations of the ship and that have come to his or her
attention.

Provisions on secrecy of the information referred to in subsection 1 above are laid down in section
24 of the Act on the Openness of Government Activities (621/1999).

Provisions on notification of accidents and incidents to the Safety Investigation Authority are laid
down in the Safety Investigation Act (525/2011).

The Finnish Transport and Communications Agency may issue further orders on the submission
and contents of the notifications referred to in subsection 1.

Section 15a (482/2017)

Use of information concerning casualties or incidents

No public authority shall undertake legal action on any unplanned or unintentional infringement
that comes to its attention only because it was notified under section 15, unless it involves
dereliction of duty deemed to constitute gross negligence or conduct punishable under the
Criminal Code of Finland (39/1889).

No shipping company, ship operator, master or any other party referred to in this Act shall
discriminate against any employee in their service or any other person who submits a notification
of a potential incident of which he or she has knowledge.

Surveyors and conduct of surveys

Section 16

Surveyors

Any surveys and assessments which are provided in this Act or which ship operators, masters or
interested parties otherwise wish to invoke as evidence in cases to be adjudicated under this Act
shall be conducted by public surveyors, unless otherwise agreed by the interested parties or if
public surveyors cannot be used without significant inconvenience.

Section 17

Appointing public surveyors

The Maritime Court appoints the necessary number of competent persons as public surveyors for
fixed term of no longer than three years at a time. The Maritime Court may, where reason arises,
cancel its appointment. The surveyors appointed by the Maritime Court have competence
throughout the country with the exception of the Region of Åland.

Section 18

Procedure for appointing surveyors

When appointing surveyors, attention shall be paid, where possible, to ensure representation of
expertise in ship and engine building and knowledge of the goods and the ability of the executing
surveyors to issue written statements.

In order to appoint surveyors, the Maritime Court shall request relevant trade associations or other
suitable parties to propose for the role persons who have the skills for such a role and are willing
to accept the role.

Section 19

Number, qualifications and rights of executing surveyors

There shall be at least two executing surveyors, who shall be qualified and appointed from among
public surveyors with the expertise required for the procedure.

If several interested parties demand a survey without agreeing on the ex ecuting surveyors, each
shall appoint an equal number.
The executing surveyors are entitled to handle the ship and cargo to the extent necessary for the
procedure to be conducted diligently.

Section 20

Assisting experts

Should those invited to conduct the survey and assessment consider that the proper conduct of
the survey requires specific expertise, they may call in experts to assist in the procedure. In such
cases, assistance may also be sought from persons who are not surveyors.

Section 21

Procedure for condemning a ship

If a ship’s survey raises the question whether the ship should be condemned as beyond repair, the
executing surveyors shall give notice thereof to the Maritime Court, which will then order one of its
members to consider and decide the matter with the executing surveyors. The same applies if an
interested party informs the Maritime Court that the executing surveyors should consider such a
question.

If the ship is condemned, the Maritime Court shall be notified thereof without delay.

Section 22

Dissatisfaction with a survey

If an interested party is dissatisfied with the survey and assessment conducted by the surveyors
appointed by him or her or by another interested party, he or she may request the Maritime Court
to order a new survey to be conducted, if still possible. In such cases, the Maritime Court orders
one of its members and, in addition to the surveyors referred to above, an equal number of other
public surveyors to jointly conduct a new procedure.
Section 23

Record of procedure

Public surveyors are obliged, in respect of the procedures to which they have been appointed, to
keep a record indicating the time of procedure, the surveyor or surveyors who conducted the
procedure with them, and which of them will keep the original copy of the record of procedure.

A copy of the record of procedure shall be provided, for a fee, to any interested party on request.

Section 24

Surveys conducted abroad

If a ship is abroad when a survey or assessment becomes necessary, the practice in place therein
for such procedures shall be observed.

Section 25

Damage assessment in certain cases

If a ship has, during its voyage, suffered damage requiring substantial repairs or a longer delay,
the master shall arrange the ship’s survey and assessment. The surveyors shall assess the damage
and the damaged value of the ship while issuing a statement on the steps to be taken to repair
such damage, as well as calculating the necessary costs incurred as a result thereof. If the ship is
repaired, a new survey shall be conducted upon completion of such work to establish whether the
ship is in such condition that the planned voyage can be performed.

If the cargo has suffered substantial damage during the voyage, or if reason arises to suspect that
the cargo is in such condition as to require special preservation measures, or if it is necessary to
discharge the cargo due to the ship being damaged, the master shall arrange a cargo survey.
Where the cargo is deemed damaged, the executing surveyors shall issue a statement on the
cause that may be considered to have resulted in such damage, while proposing measures to be
taken.
Section 26

Master’s obligation to arrange a survey

If the master finds that there is reason to certify that any possible damage to the cargo did not
result from deficiencies in hatch battens, stowage, side shell covering or the ceiling, or from any
other such reason, he or she shall arrange a survey.

If it appears or there is reason to suspect, upon opening the hatc hes or subsequently unloading
the cargo, that goods have suffered damage, its cause and, if necessary, its scale, shall be
established, if and where possible, prior to moving the goods on board the ship.

The consignee of the cargo shall be invited to attend such a survey, if this can be done without
inconvenience.

PART VI

FINAL PROVISIONS

Chapter 19

Time bars for claims

Section 1 (860/2016)

Time bars for claims

Any action to recover payment for the following claims shall, whether liability is limited or
unlimited, be initiated:

1) for any claim for a salvage reward or a special contribution referred to in section 9 of chapter
16, within two years of termination of salvage operations and, for any claim for a portion of
salvage reward under section 11 of chapter 16, within one year of the person in question
being informed by the ship operator of the amount of salvage reward and portion; the person
against whom the claim is made may, however, extend this period by a declaration to the
claimant;
2) for any claim for compensation arising out of a collision or an incident mentioned in section 6
of chapter 8, within two years of the date when the damage was sustained and, where the
claim arises out of any person having paid more than his or her fair share under section 3 of
chapter 8, within one year of the date when he or she paid the amount;

3) for any claim based on delayed carriage of a passenger, within two years of disembarkation or
the date on which it should have taken place; (249/2017)

4) for any claim for compensation based on loss of, damage to or delay in delivery of goods or
inaccurate or incomplete particulars provided on a bill of lading, within one year of the date
on which the goods were or should have been delivered;

5) for any claim for compensation based on delay in delivery of luggage, within two years of the
date on which cabin luggage was brought ashore or other luggage was delivered; (249/2017)

6) for any claim arising out of a contribution in general average or any other costs to be
allocated on the same criteria, within one year of the date on which the average adjustment
became final;

7) for compensation for oil pollution damage referred to in chapter 10 or bunker oil pollution
damage referred to in chapter 10a, within three years of the date on which the damage
occurred;

8) for compensation for costs arising from locating, marking and removing a wreck under the
Nairobi Convention, within three years of the date on which the wreck was considered to pose
a hazard under section 4 of chapter 11a; (1401/2019)

Paragraph 8 as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

8) for compensation for costs arising from locating, marking and removing a wreck under the
Nairobi Convention, within three years of the date on which the wreck was considered to pose
a hazard under section 4 of chapter 11a.

9) for compensation for damage caused by hazardous and noxious substances referred to in
chapter 11, within three years of the date on which the injured party knew or ought
reasonably to have known of the damage and the identity of the owner of the
ship. (1401/2019)

Paragraph 9 as added by Act 1401/2019 enters into force on a date to be specified by decree.
In respect of any action for compensation based on paragraph 4 of subsection 1, the interested
parties may agree on extending the period provided therein following the occurrence giving rise to
the action. A recourse action may be instituted even after the expiry of the said period, however,
not later than within one year of the time when the principal claim is satisfied or an action in
respect thereof is instituted.

The provisions of Finnish law on extension or suspension of a limitation period referred to in this
section apply in Finland even if the legal relationship were otherwise subject to foreign law. In no
event shall the periods mentioned in paragraphs 3 and 5 of subsection 1 be extended beyond
three years of the date of disembarkation or when luggage was brought ashore or when these
should have taken place.

In cases referred to in paragraph 7 of subsection 1, no action shall be brought after six years from
the date on which the incident took place or, if the damage was caused by a series of occurrences,
from the date of the first such occurrence.

In cases referred to in paragraph 8 of subsection 1, no action shall be brought after six years from
the date on which the maritime casualty resulting in the wreck took place or, if the maritime
casualty arose out of a series of occurrences, from the date of the first such occurrence.

If the debtor, in cases not mentioned in subsection 1, is liable for compensation or any other claim
for which the ship operator enjoys limited liability or which is only secured by the goods loaded on
board, any action to recover payment of claims for compensation shall be instituted within two
years of the date on which the damage occurred and, in respect of any other claim, within one
year of the date on which such claim became due. If the debtor also enjoys the right t o demand
payment from the ship operator, cargo owner or anyone else, where liability is not limited, the
general provisions on retention of the right of action shall be observed.

Where a claim mentioned in this section has been referred to an Average Adjuster, such action is
deemed to have been initiated to recover payment.

In cases referred to in paragraph 9 of subsection 1, however, no action shall be brought after ten
years from the date on which the incident took place or, if the damage was caused by a series of
occurrences, from the date of the last such occurrence. (1401/2019)

Subsection 8 as added by Act 1401/2019 enters into force on a date to be specified by decree.
Chapter 20

Penal provisions

Section 1

Failure to ensure seaworthiness

If a master has, when not in distress, proceeded to sea on a ship which had such deficiencies in
frame, machinery or equipment, or which was so poorly manned or so heavily or improperly laden
or in such improper ballast that he or she ought to have realised that the v oyage would manifestly
endanger the lives of those on board, he or she shall be sentenced to a fine or to imprisonment for
a period of no more than one year.

A ship operator or any other person shall be sentenced to a punishment referred to in subsection 1
if he or she has intentionally led the master to commit such violation or furthered it through advice
or action, as shall a ship operator or any other person acting on behalf of the ship in lieu of the
operator if he or she, with knowledge of such deficiencies and faults as mentioned above, has
neglected, if within his or her power, to prevent the ship from proceeding to sea.

If a master neglects the duties assigned to him or her under section 3 of chapter 6, and the case is
dissimilar to those mentioned in subsection 1, he or she shall be sentenced to a fine or to
imprisonment for a period of no more than six months.

A ship operator or any other person shall be sentenced to a punishment referred to in subsection 3
if he or she has intentionally led the master to commit such violation or furthered it through advice
or action, as shall a ship operator or any other person acting on behalf of the ship in lieu of the
operator if he or she, with knowledge of such faults or deficiencies in the seaworthiness and
equipment of the ship, has neglected, if within his or her power, to eliminate such fault or
deficiency.

If a master has failed to comply with what is assigned to him or her under section 9 of chapter 6,
he or she shall be sentenced to a fine.

If any act or omission referred to in this section has caused harm, the perpetrator shall be
sentenced, unless a more severe punishment for the act is provided elsewhere by law, to
imprisonment for a period of no more than two years in cases mentioned in subsections 1 and 2
and to imprisonment for a period of no more than one year in cases mentioned in subsections 3
and 4.
Section 2

Failure to observe good seamanship

If a master, in a manner not referred to in section 1, or a chief engineer officer, deck officer,
engineer officer or any other person performing a function of material importance to maritime
safety, neglects his or her duties as a good sailor in respect of preventing maritime casualties, he
or she shall, unless a more severe punishment for the act is provided elsewhere by law, be
sentenced to a fine or to imprisonment for a period of no more than one year.

Section 3

Failure to comply with obligations concerning the ship’s documents

If a master has failed to comply with his or her obligations under section 4 of chapter 6, he or she
shall be sentenced to a fine.

If a master or ship operator fails to provide any person entitled to it with information on the
contents of the ship’s logbook or the notebook kept for it, or on the entries made by technical
means on the ship’s navigation and the running of its machinery, he or she shall be sentenced to a
fine.

If a ship operator neglects his or her duty to preserve the ship’s logbook or the notebook kept for
it, or the entries made as provided in subsection 2, he or she shall be sentenced to a fine.

Section 4

Dishonesty in keeping record books

If a master fails to comply with the provisions of chapter 18 on keeping and disclosure of record
books, he or she shall be sentenced to a fine.

If a master has, for the purposes of benefiting himself or herself or another or causing harm, kept
a record book or modified, destroyed, hidden or rendered it illegible, he or she shall, unless a more
severe punishment for the act is provided elsewhere by law, be sentenced to a fine or to
imprisonment for a period of no more than two years or, under highly extenuating circumstances,
to a fine.
If the master otherwise enters false or misleading information in the record book, he or she shall
be sentenced to a fine, unless a more severe punishment for the act is provided elsewhere by law.

A chief engineer officer, deck officer, engineer officer or radio operator who has committed an act
referred to in subsection 1, 2 or 3 shall be sentenced as provided therein.

Section 5

Maritime declaration violations

A master who fails to report in accordance with subsection 2 of section 7 of chapter 18 to submit a
maritime declaration or causes deferral of submission thereof, without the existence of the criteria
for doing so mentioned in subsection 1 of section 7 of chapter 18, shall be sentenced to a fine.

If a master fails to submit the notification as provided in section 8 of chapter 18, he or she shall be
sentenced to a fine. If the master intentionally provides false or misleading information in such a
notification, he or she shall also be sentenced to a fine, unless a more severe punishment for the
act is provided elsewhere by law.

Section 6

Omissions in the event of collision

A master who neglects any of his or her obligations under section 5 of chapter 8 in the event of
collision or an incident mentioned in section 6 of chapter 8 shall be sentenced to a fine or to
imprisonment for a period of no more than two years.

A master who neglects any of his obligations under section 11 of chapter 6 shall be sentenced to a
fine or to imprisonment for a period of no more than six months.

Section 7

Misuse of a position of trust in shipping

If a master intentionally acts dishonestly towards a ship operator, cargo owner, insurer or any
other person whose rights and interests he or she is to protect under this Act, he or she shall,
unless a more severe punishment for the act is provided elsewhere by law, be sentenced to
imprisonment for a period of no more than two years.
Where an offence referred to in subsection 1 was committed out of gross negligence, the
perpetrator shall be sentenced to a fine or to imprisonment for a period of no more than one year.

A ship operator who has neglected his or her obligation under subsection 2 of section 4 of chapter
22, thereby causing harm to a mortgagee, shall be sentenced to a fine or to imprisonment for a
period of no more than two years.

Section 8

Abandonment of ship

If a master resigns and abandons a ship entrusted to him or her, he or she shall be sentenced to a
fine or to imprisonment for a period of no more than two years.

If a master abandons a ship in danger, without complying with the provisions of section 12 of
chapter 6, or with what is otherwise his or her duty as a good sailor, he or she shall be sentenced
to a fine or to imprisonment for a period of no more than one year.

Section 9 (1688/2009)

Section 9 was repealed by Act 1688/2009.

Section 9a (1401/2019)

Failure to comply with the obligation to insure under the Maritime Act

A ship operator, owner, registered owner or carrier who wilfully neglects an obligation to take out
insurance or lodge security, as provided in section 2 of chapter 7, section 10 or subsection 1 of
section 11 of chapter 10, section 10 or subsection 1 of section 11 of chapter 11, section 6 of
chapter 11a, section 23a of chapter 15 or Article 4bis of Annex I to the Athens Regulation, or
based on subsection 2 of section 1 of chapter 15 herein, shall be sentenced to a fine for failure to
comply with the obligation to insure under the Maritime Act .

A ship manager who allows the ship to be used for shipping, although he or she knew or ought to
have known that the obligation to take out insurance or lodge security, as provided in section 10
or subsection 1 of section 11 of chapter 10, or section 10 or subsection 1 of section 11 of chapter
11, or section 6 of chapter 11a, had not been satisfied, shall also be sentenced for failure to
comply with the obligation to insure under the Maritime Act. The same applies to any person
operating the ship in lieu of the owner, as well as to the ship’s master.

Section 9a as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:

Section 9a (860/2016)

Failure to comply with the obligation to insure under the Maritime Act

A ship operator, owner, registered owner or carrier who wilfully neglects an obligation to take out
insurance or lodge security, as provided in section 2 of chapter 7, section 10 or subsection 1 of
section 11 of chapter 10, section 6 of chapter 11a, section 23a of chapter 15 or Article 4bis of
Annex I to the Athens Regulation, or based on subsection 2 of section 1 of chapter 15 herein, shall
be sentenced to a fine for failure to comply with the obligation to insure under the Maritime
Act. (249/2017)

A manager of a ship who allows the ship to be used for shipping, although he or she knew or
ought to have known that the obligation to take out insurance or lodge security provided in
section 10 or subsection 1 of section 11 of chapter 10 had not been satisfied, shall also be
sentenced for failure to comply with the obligation to insure under the Maritime Act. The same
applies to any person operating the ship in lieu of the owner, as well as to the ship’s master.

Section 9b (1401/2019)

Failure to comply with the obligation to carry a certificate of insurance

A ship’s master who wilfully neglects the obligation to ensure that a certificate of insurance or
security is carried on board the ship, as provided in subsection 3 of section 3 of chapter 7,
subsection 3 of section 10 or subsection 2 of section 11 of chapter 10, subsection 2 of section 11
or subsection 4 of section 12 of chapter 11, subsection 3 of section 7 of chapter 11a, or subsection
3 of section 24 of chapter 15, shall be sentenced to a fine for failure to comply with the obligation
to carry a certificate of insurance.

Subsection 9b as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:
Section 9b (249/2017)

Failure to comply with the obligation to carry a certificate of insurance

A master who wilfully neglects the obligation to ensure that a certificate of insurance or security is
carried on board the ship, as provided in subsection 3 of section 3 of chapter 7, subsection 3 of
section 10 or subsection 2 of section 11 of chapter 10, subsection 3 of section 7 of chapter 11a, or
subsection 3 of section 24 of chapter 15, shall be sentenced to a fine for failure to comply with the
obligation to carry a certificate of insurance.

Sections 9c–9d

Sections 9c–9d were repealed by Act 860/2016.

Section 10

Forfeiture of certificate for competency

A master sentenced to a punishment for an offence mentioned in sections 1, 2, 4, 8 or 9, or for

waterway traffic intoxication, may at the same time be sentenced to forfeit his or her right to be a
ship’s master for a fixed period, where specific qualification standards have been provided by law
for this purpose. If the offence demonstrates that the master is unsuitable to serve in any other
capacity on board a ship, he or she may also be sentenced to forfeit such competency.

The provisions of subsection 1 apply correspondingly to any chief engineer officer, deck officer,
engineer officer or radio operator sentenced to a punishment for an offence mentioned in section
2 or subsection 2 of section 4, or for waterway traffic intoxication, and if the offence demonstrates
that he or she is unsuitable for his or her position.

The court shall notify of any sanction referred to in this section without delay to the Fin nish
Maritime Administration and, in respect of a radio operator, also to the Telecommunications
Administration Centre.
Section 11

Master’s deputy

The provisions of this chapter on offences committed by a master also apply when such an offence
was committed by any person designated in place of the master.

Section 12 (549/1999)

Reference provision

Provisions on punishments for waterway traffic intoxication and relinquishing a vehicle to an

intoxicated person are laid down in sections 5 and 8 of chapter 23 of the Criminal Code of Finland.

Section 13

Right to bring charges

The public prosecutor shall not bring charges for any offence referred to in section 7, unless the
injured party reports the offence for prosecution.

Chapter 21

Competent jurisdiction and proceedings in maritime cases

Section 1 (862/2017)

Maritime Courts

The courts of first instance considering the matters referred to in this Act ( Maritime Courts) are the
District Courts of Åland and Helsinki.

The jurisdiction of the Maritime Court of Åland is the Region of Åland and the jurisdiction of the
Maritime Court of Helsinki covers the rest of Finland.
Section 1a (862/2017)

Quorum in the Maritime Court

The provisions of chapter 2 of the Code of Judicial Procedure on quorum in the District Court apply
to quorum in the Maritime Court.

Notwithstanding the provisions of subsection 1, in consideration of maritime declarations, ship

arrests under chapter 4, and matters referred to in sections 21 and 22 of chapter 18, the Maritime
Court shall have a quorum with only the chairperson present.

Section 2 (862/2017)

Experts in maritime law

In the Maritime Court, the Court is assisted by two experts knowledgeable of and well versed in
maritime matters, who are present in the proceedings. However, the presence of the experts is not
necessary if the chairperson of the Maritime Court so decides due to the minor importance of the
case or its nature.

An expert shall assist the Maritime Court with any necessary clarifications about issues of shipping
and marine technology if requested by the Maritime Court or if the expert personally considers it
necessary to clarify the matter. An expert is entitled, via or at the consent of the chairman of the
Maritime Court, to pose questions to the interested parties, witnesses or any persons summoned
to court to provide clarification. If the Maritime Court requests an expert to issue a statement on a
particular issue, he or she shall provide it for the record.

The Maritime Court appoints the experts and four alternates for them for a period of two years at
a time. Prior to such appointment, an expert shall give an affirmation before the Maritime Court
corresponding to the judge’s solemn affirmation of office referred to in subsection 4 of section 6 of
chapter 19 of the Courts Act (673/2016).

Experts are entitled to a reasonable fee separately determined by the Maritime Court for each
session. In civil cases, the plaintiff pays the fee in advance, but it will ultimately be payable by the
losing party. In any other matters and in consideration of maritime declarations, the fee for
assistance is payable from government funds in compliance with the provisions of section 22 of
chapter 17 of the Courts Act.
Section 3 (862/2017)

Maritime Court having jurisdiction over disputes

Any disputes referred to in this Act are heard by the Maritime Court within the jurisdiction of which
the defendant has a domicile or permanent business establishment, or the ship is located. A
shipping partnership’s domicile is considered to be in the ship’s home port.

Where a public authority has been given security for a claim in order to release a ship subject to
arrest or any other precautionary measure, the matter may also be considered by the Maritime
Court within the jurisdiction of which such security was given. Any action for a claim for which
security has been provided may be heard by that Maritime Court even if the security were
released.

Section 3a (1401/2019)

Maritime Court having jurisdiction over cases involving oil pollution damage

A Finnish court of law has jurisdiction to consider a claim for damages under chapter 10 if the oil
pollution damage occurred in Finland or within the Finnish exclusive economic zone, or if
preventive measures to prevent or minimise such damage were performed in Finland or within the
Finnish exclusive economic zone.

Where a Finnish court has jurisdiction under subsection 1, any claim for damages for other oil
pollution damage arising out of the same incident may be considered by the same court.

The competent court in cases referred to in subsections 1 and 2 is the District Court of Helsinki.

If a limitation fund referred to in section 6 of chapter 10 has been constituted in Finland following
an incident and the ship owner or insurer against whom an action has been brought in a court in
Finland or another Contracting State is entitled to limit liability, the District Court of Helsinki
considers claims relating to the distribution of the limitation fund between those entitled to
damages.

Section 3a as amended by Act 1401/2019 enters into force on a date to be specified by decree.
Previous form of wording:
Section 3a (686/2008)

Maritime Court having jurisdiction over cases involving oil pollution damage

An action for damages under chapter 10 may be brought in a Finnish court if the oil pollution
damage occurred in Finland or within the Finnish exclusive economic zone referred to in paragraph
10 of section 1 of the said chapter, or if preventive measures to prevent or minimise such damage
were performed within the Finnish territory or exclusive economic zone.

Section 3b (862/2017)

Maritime Court having jurisdiction over salvage operations

Besides the provisions of section 3, claims involving a salvage reward or special compensation
referred to in chapter 16 may be considered by the Maritime Court within the jurisdiction of which
the salvage operations were carried out or salved property was brought ashore.

If the case referred to in subsection 1 concerns salvage operations not performed in Finland, any
action may, in addition to the provisions of section 3, be brought in the District Court of Helsinki.

Section 3c (686/2008)

Maritime Court having jurisdiction over cases involving bunker oil pollution damage

An action for damages under chapter 10a may be brought in a Finnish court if the damage
occurred in Finland or within the Finnish exclusive economic zone, or if preventive measures to
prevent or minimise such damage were performed in Finland or within the Finnish exclusive
economic zone.

Where an action may be brought in a Finnish court under subsection 1, any action for damages for
other pollution damage arising out of the same incident may be brought in the same court.

Any action for compensation that may be brought in a Finnish court under subsections 1 and 2 is
heard by the District Court of Helsinki.

If a limitation fund referred to in section 7 of chapter 9 has been constituted in Finland following
an incident and the registered owner or insurer against whom an action is pursued in Finland or
another Contracting State is entitled to limit liability, the District Court of Helsinki considers matters
relating to the distribution of the limitation fund between those entitled to damages.
Section 3d (860/2016)

Maritime Court having jurisdiction over cases involving wrecks resulting from maritime
casualties

If an action for compensation for costs arising from locating, marking and removing a wreck under
chapter 11a or the Nairobi Convention may be instituted in a Finnish court, the action is heard by
the District Court of Helsinki.

If a limitation fund referred to in section 7 of chapter 9 has been constituted in Finland following
an incident and the registered owner or insurer against whom an action is pursued in Finland or
another Contracting State is entitled to limit liability, the District Court of Helsin ki considers cases
relating to the distribution of the limitation fund between those entitled to damages.

Section 3e (1401/2019)

Maritime Court having jurisdiction over cases involving damage caused by hazardous
and noxious substances

A Finnish court of law has jurisdiction to consider a claim for damages under chapter 11 if the
damage occurred in Finland or within the Finnish exclusive economic zone, or if preventive
measures to prevent or minimise such damage were performed in Finland or within the Finnish
exclusive economic zone. A Finnish court also has jurisdiction to consider a claim for damages
under chapter 11 in cases referred to in paragraph 3 of subsection 1 and subsection 2 of chapter 2
where the damage occurred outside the territory of any state if:

1) the ship is registered in Finland or, if the ship is not registered, sailing under the Finnish flag;

2) the shipowner’s domicile or principal place of business is in Finland; or

3) a limitation fund referred to section 6 of the said chapter has been constituted in Finland.

Where a Finnish court has jurisdiction under subsection 1, any claim for damages for other
damage arising out of the same incident may be considered by the same court.

Any claim that may be considered by a Finnish court under subsections 1 and 2 is heard by the
District Court of Helsinki.
If a limitation fund referred to in section 6 of chapter 11 has been constituted in Finland following
an incident and the ship owner or insurer against whom an action has been brought in a court in
Finland or another Contracting State is entitled to limit liability, the District Court of Helsinki
considers claims relating to the distribution of the limitation fund between those entitled to
damages.

Section 3e as added by Act 1401/2019 enters into force on a date to be specified by decree.

Section 4

Maritime Court having jurisdiction over carriage of general cargo

Any action in respect of liability based on a contract for the carriage of general cargo may only be
instituted in the Maritime Court which is situated in:

1) the principal place of business or, in the absence thereof, the habitual residence of the
defendant;

2) the place where the contract of carriage was made provided that the defendant has there a
place of business, branch or agency through which the contract was made;

3) the place where the agreed port of loading or the agreed and actual port of discharge is
located; or

4) the place determined in the contract of carriage.

An action may also be instituted in the Maritime Court within the jurisdiction of which the ship
carrying the goods was subjected to arrest or any other precautionary measure. Where a public
authority has been given security in order to release a ship subject to arrest or any other
precautionary measure, the action may also be brought in the Maritime Court situated in the place
where such security was given. Any action for a claim for which security has been provided may be
brought in the latter court even if the security were released.

The provisions of subsections 1 and 2 do not prevent any provisional measures.

Section 5 (249/2017)

Maritime Court having jurisdiction over carriage of passengers

Any action based on a contract for the carriage of passengers or luggage may only be instituted in
the Maritime Court within the jurisdiction of which:

1) the defendant’s permanent residence or principal place of business is located;

2) the port of departure or destination according to the contract of carriage is located;

3) the plaintiff’s domicile or permanent residence is located, provided that the defendant has a
place of business and is subject to the Court’s jurisdiction in Finland; or

4) the contract of carriage was made, provided that the defendant has a place of business and is
subject to the Court’s jurisdiction in Finland.

Notwithstanding the provisions of subsection 1, the parties may, after the occurrence of the
dispute, agree on the competent Maritime Court or on referral of the matter to arbitrators.

The Maritime Court having jurisdiction under subsections 1 and 2 of this section also has
jurisdiction to consider disputes of international character, unless otherwise provided in Article 17
of the 2002 Athens Convention.

Section 6

Agreement on the competent court

Subject to section 60 of chapter 13 and section 4 of this chapter, disputes may be considered by
any court as agreed by those concerned besides the Maritime Court having jurisdiction under
section 3.

Disputes may also be heard by a court other than the Maritime Court referred to in sections 3 and
4 where the defendant, upon appearing in court, has not, prior to responding to the principal
claim, raised an objection to being summoned to present a defence to the case in a court other
than the legally competent Maritime Court.
Section 7

Actions against the master and ship operator

If any person wishes to bring an action to enforce a claim based on an act or omission by the
master against both the master and the ship operator at the same time, he or she is entitled to
institute an action against both in the Maritime Court in which either is obliged to respond.

Section 8 (480/2021)

Appeals and enforcement

The Average Adjuster’s decisions may be appealed to the Maritime Court. Appeals shall be made in
compliance with the provisions of sections 12–14, 14a–14c and 15–18 of chapter 25 of the Code of
Judicial Procedure on appeals against district court decisions.

A maritime court decision may be appealed to the Supreme Court if the Supreme Court grants
leave to appeal. Appeals shall be made in compliance with the provisions of chapter 30 of the
Code of Judicial Procedure concerning appeals in cases considered by the Court of Appeal as a
court of second instance.

The Average Adjuster’s decisions that have not been appealed are enforced in the same manner
as any final judgement.

Section 8a (249/2017)

Application of European Union law and international conventions

The provisions of this Act on competent jurisdiction shall be observed subject to the provisions of
European Union law and any conventions relating to jurisdiction and protocols thereto which are
binding on Finland.

Section 9 (862/2017)

Maritime Court having jurisdiction over criminal cases

Any criminal cases considered by virtue of this Act, as well as any cases involving regulations for
prevention of collision between vessels are heard by the Maritime Court within the jurisdiction of
which the offence was committed. If the offence was committed while underway, the case is heard
by the Maritime Court within the jurisdiction of which the defendant first arrives on th e ship or he
or she is otherwise found, or the ship’s home port is situated.

Minor criminal cases may be considered and resolved in connection with a maritime dispute if
these cannot be separated or are closely linked.

Section 10

Exchange of written pleadings in maritime cases

In maritime cases not referred to in sections 8 and 9, the interested parties shall conduct a
preliminary exchange of written pleadings to develop each party’s claims and to establish the
extent to which the arguments made by either side are disputed. To that end, each party shall,
within the period of time determined in the summons, submit to the Maritime Court or the office
thereof a written pleading, and another copy on the part of the plaintiff, as well as the documents
invoked in the written pleadings, in two copies, one of which may be taken by the opposing party.
For specific reasons, the Maritime Court may, upon request by one of the parties, grant that party
an extension for submission of written pleadings. Following expiry of the period for exchanging
written pleadings, the Maritime Court shall fix the date on which the case will be heard in court.

If the Maritime Court considers the case to be of such simple character that it can immediately be
considered in an oral hearing, the summons may determine that no preliminary exchange of
pleadings be conducted.

Section 11

Compensation for postponement of a case

If an interested party has failed to comply with the provisions of section 10, resulting in
postponement, he or she shall cover any costs involved.

Section 12

Reference provision on legal proceedings

Unless otherwise provided herein, the provisions on proceedings in the District Court shall be
observed in proceedings in the Maritime Court.
Section 13 (862/2017)

Appeals

Appeals against decisions issued by the Maritime Court, excluding those referred to in section 8,
may be made to the Helsinki Court of Appeal as provided in the Code of Judicial Procedure.

Section 14

Appeals against Maritime Court judgements on average adjustments

Any person who wishes to appeal a judgement of the Maritime Court in a case mentioned in
section 8 shall, under threat of forfeiting his or her right of action, submit to the Maritime Court an
appeal document addressed to the Supreme Court in two copies no later than on the 30 th day from
the day when the judgement was handed down. The appeal document shall be accompanied by
any documents that he or she considers necessary to present.

The opposing party may take one of the copies of the appeal do cument and shall provide the
Maritime Court with his or her account and any documents that he or she wishes to invoke within
one month of the expiry of the appeal period. Failing this, he or she will forfeit the right to be
heard.

Following submission of the account or expiry of the period for submission thereof with no account
submitted, the Maritime Court shall, without delay, deliver all of the appeal documents submitted
to the Supreme Court, including all of the relevant documents, as well as the case file and
recordings, complete with a copy of the judgement or the court order drawn up as a separate
document.

Section 15

Arbitration

Where a dispute is to be resolved by arbitrators under this Act, the provisions of the Arbitration Act
(967/1992) shall be observed in addition to what is provided in section 61 of chapter 13.
Chapter 22

Implementation

Section 1

Applications for payment out of a ship or cargo

Where payment of a claim is sought out of a ship or cargo pledged as security for the claim, the
action shall be considered by the court having jurisdiction in the home port of the ship or the place
in which the pledged asset is situated.

The operator or master of the ship, as well as the cargo owner, if the latter resides or is staying in
such a place, shall be given an opportunity to be heard.

Any person with a lien on a share in a ship under this Act shall bring an action for payment of the
claim out of the asset pledged as security against the owner in the court of the place in which the
owner has a place of residence. If this person does not reside in Finland, subsection 1 applies.

Section 2

Confirmation of payment out of pledged assets

If the court upholds an action referred to in section 1, the court shall confirm the claim referred to
in section 1 to be payable out of the pledged asset on pain of attachment.

Section 3

Distribution of the sales price of a ship sold by way of enforcement

Where a ship is sold by way of enforcement, those holding liens on the ship are entitled to
immediate payment out of the sales price, if sufficient, and the ship shall be transferred to the
buyer free from any liens, excluding any mortgaged debt capital which the mortgagee has, prior to
distribution of the price, authorised to remain attached to the ship and for which the buyer has
assumed liability. The distribution of the sales price shall otherwise comply with the provisions of
the Execution Act.

No share in a ship shall be sold without retaining any valid liens on the ship.
Section 4

Selling a ship in certain cases

Where a ship is condemned and is subsequently sold, every lien on the ship will lapse and the
claimant will have an equal right to the sales price instead, if it is still unpaid or in possession of an
agent of the master or operator of the ship.

If a ship is, while abroad, attached or wrecked, or condemned, the mortgagee is entitled to
immediate payment of his or her claim, even if it were not otherwise due. The ship operator shall
immediately notify of such occurrence both to the registration authority and the mortgagee. Failing
this, he or she shall compensate the mortgagee for any loss and expenses in full.

Section 5

Prohibition of attachment or arrest

No goods loaded on a ship ready to sail shall be attached or arrested where such a measure would
cause a delay and violate the rights of a third party.

Nor shall the master or any other person in the service of the ship be prevented from proceeding
to sea due to debt after the ship has been cleared and is otherwise ready to sail, nor shall
anything brought on board by him or her in that capacity be attached or arrested.

Section 6 (421/1995)

Enforcement of foreign judgements in cases involving oil pollution damage

If a judgement on compensation for oil pollution damage has been rendered in another
Contracting State and has become final and enforceable therein, it shall, subject to the provisions
of section 9 of chapter 10 or subsection 4 of section 3a of chapter 21, be enforced in Finland
without further proceedings in the matter, if the courts of the C ontracting State concerned had
jurisdiction over the matter in accordance with the 1992 Liability Convention. Notwithstanding, no
obligation to enforce a foreign judgement exists where the amount of the ship owner’s liability
would thereby be exceeded.

Applications for enforcement shall be made to the Helsinki Court of Appeal and accompanied by:
1) the judgement in an original copy or as a copy certified by the relevant authority;

2) a statement issued by the relevant authority of the state where the jud gement was given to
the effect that the judgement concerns compensation under the 1992 Liability Convention and
that it has become final and enforceable in the said state; and

3) where the documents mentioned above are not in Finnish or Swedish, a Finnish or Swedish
translation thereof, certified ex officio.

Any documents mentioned in paragraphs 1 and 2 of subsection 2 shall include a certificate

attesting that the documents were issued by a public authority entitled to issue such documents.
Such certificates are issued by a Finnish diplomatic or consular mission or the highest judicial
authority in the state where the judgement was given.

No application for enforcement shall be approved without providing the opposing party with an
opportunity to submit his or her response.

If such an application is approved, the judgement is enforced in the same manner as any final
judgement rendered by a Finnish court, unless the Supreme Court orders otherwise on grounds of
an appeal document.

Section 7 (421/1995)

Impact on enforcement of a limitation fund constituted abroad

If a limitation fund under the 1992 Liability Convention has been constituted in another
Contracting State in accordance with the laws in force therein, and if the ship owner or insurer
against whom an action for compensation has been brought in a Finnish court is entitled to limit
his or her liability, the court shall order that the judgement may only be enforced after any matters
concerning the distribution of the limitation fund are resolved in the relevant state in accordance
with its laws.

Section 8 (686/2008)

Recognition and enforcement of judgements on bunker oil pollution damage

Subject to the provisions of subsection 2, the provisions of section 6 of this chapter apply, as
appropriate, to enforcement of judgements rendered in another Contracting State on
compensation for pollution damage referred to in chapter 10a.
Judgements rendered in a Member State of the European Community are subject to Council
Regulation (EC) No 44/2001 on jurisdiction and the recognition and enforcement of judgments in
civil and commercial matters.

Section 9 (249/2017)

Recognition and enforcement of judgements on loss or damage caused to passengers

or luggage

Any judgement on compensation for loss or damage caused to a passenger or his or her luggage
rendered in another State Party to the 2002 Athens Convention which has become final and
enforceable therein shall be enforced in Finland, if the court of the State Party concerned had
jurisdiction over the matter. There shall be no review of the merits of the judgement given.
Notwithstanding, no judgement may be recognised nor enforced where it was obtained by fraud or
where the defendant was not given reasonable time and a fair opportunity to arrange for his or
her defence.

The provisions of subsections 2–4 of section 6 of this chapter apply to enforcement of judgements.

The provisions of subsections 1 and 2 apply, unless otherwise provided by European Union law or
any international treaty binding on Finland.

Section 10 (1401/2019)

Recognition and enforcement of judgements on damage caused by hazardous and

noxious substances

Any judgement on compensation for damage caused by hazardous and noxious substances
referred to

Chapter 11 rendered in another State Party to the HNS Convention which has become final and
enforceable therein shall be enforced in Finland, if the court of the State Party concerned had
jurisdiction over the matter under the said Convention. There shall be no review of the merits of
the judgement given. Notwithstanding, no judgement may be recognised nor enforced where it
was obtained by fraud or where the defendant was not given reasonable time and a fair
opportunity to arrange for his or her defence.

The provisions of subsections 2–4 of section 6 apply to enforcement of judgements.

The provisions of subsections 1 and 2 apply, unless otherwise provided by European Union law or
any international treaty binding on Finland.

Section 10 as added by Act 1401/2019 enters into force on a date to be specified by decree.

Chapter 22a (482/2017)

Inspections and evaluations

Section 1 (482/2017)

Audits and evaluations by the International Maritime Organisation

The International Maritime Organisation is entitled to evaluate and audit how Finland is complying
with and implementing the international shipping obligations based on international conventions
on shipping and the resolutions by the International Maritime Organisation. In order to carry out
this function, the International Maritime Organisation is entitled to conduct audits on all premises
under the jurisdiction of the state.

The Ministry of Transport and Communications is responsible for cooperation between the Finnish
Government and the International Maritime Organisation and for the arrangements of the above-
mentioned audits in Finland.

Section 2 (482/2017)

Inspections by the European Commission and the European Maritime Safety Agency

The European Commission and the European Maritime Safety Agency are entitled to conduct
inspections in accordance with the policy determined by the Administrative Board of the European
Maritime Safety Agency and review the operations of the Finnish public authorities to comply with
and implement European Union regulations on maritime safety, marine environment and maritime
security.

The Ministry of Transport and Communications is responsible for the general arrangements of the
inspections by the European Maritime Safety Agency in Finland.

The general arrangements for inspections concerning safety investigations in Finland are the
responsibility of the Safety Investigation Authority.
Chapter 23

Miscellaneous provisions

Section 1 (862/2017)

Section 1 was repealed by Act 862/2017.

Section 2

Special Drawing Right

For the purposes of this Act, Special Drawing Right (SDR) refers to the Special Drawing Right as
defined by the International Monetary Fund.

Special Drawing Rights shall be converted into the Finnish currency according to the exchange rate
at the date on which security for liability is provided or, if no securit y is provided, on which
payment is made. Notwithstanding, the amounts of liability referred to in section 15 of chapter 15
above are converted at the rate on the date of payment. In conversion, the value of the Finnish
mark shall be determined in accordance with the method of evaluation applied by the International
Monetary Fund in effect at the date in question for its operations.

Section 3 (991/2018)

Competent authority

The Finnish Transport and Communications Agency functions as the competent national authority
referred to in the Conventions and Resolutions of the International Maritime Organisation, unless
otherwise provided in this or another act.
Chapter 24

Transitional provisions and entry into force

Section 1

Entry into force

This act enters into force on a date to be specified by decree.

This Act repeals the Maritime Act of 9 July 1939 (167/1939), as amended.

Notwithstanding, the decrees issued by virtue of the repealed Act remain in force, unless
otherwise provided by decree.

This Act entered into force in accordance with Decree 677/1994 on 1 October 1994.

Section 2

Transitional provisions

The provisions of law in force at the time of the entry into force of this Act apply to contracts for
the carriage of goods concluded before the Act’s entry into force. However, where a bill of lading
or sea waybill is issued under such contract after the entry into force of this Act, this Act shall
apply in respect of a third party.

Notwithstanding, the provisions of this Act apply to contracts for the carriage of passengers
concluded before this Act’s entry in force if the occurrence on which liability is based took place
after this Act’s entry into force.

Section 3

Reference provision

Any reference elsewhere in legislation to the provisions of the repealed Act shall be taken to mean
a reference to the corresponding provisions of this Act.